To What Extent That Finances Give Advantages to Small Business

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To what extent that finances give advantages to small business 1. Motives to build up the topic 1. how important is finance to business In running a business, finance is an important study and it is essential for managers to consider seriously. According to E.Maclaney and P.Atrill(2012), finance is an operation of raising funds and investing these funds for businesses. It also reveals that the quality of the financing and the investment decisions are positive relative to the fortunes of the business. Therefore, studying on what finance has influence on business is important for new investors planning to run a new business. In my dissertation, small business in china would be set as the data because Chinese economy is one of the significant economies in the world and it is important for a Chinese student planning to build up a business in china. From the “New standards to define ‘small business’” (China diary, 2010), it reveals that 95.8% of Chinese enterprises are running small businesses. Furthermore, the standards of small business are that the small business enterprises have less than 2000 employees and the annual sales of SBE are between 300 million yuan and 400 million yuan. In conclusion, it is believed that there is demand for examining the relationships of finance and small business. 2. Techniques planned to be used in analysis According to E.Maclaney and P.Atrill(ibid), the sources of finance are divided into internal sources and external sources. Different sources of finance can bring different advantages and disadvantages to the companies. In my dissertation, it is going to give a brief discussion on the comparison about the different outcomes from different finance methods. Furthermore, there would be analysis based on numerical data workout. In accounting, ratios are used to examine the performance and management of the enterprises for

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