Why do cultural enterprises need financing?

Although cultural entrepreneurs have good cultural literacy and background, they lack management background. They can design high-quality products and services, but they can't turn them into complete business logic and make long-term strategic plans for enterprises.

Secondly, some cultural enterprises have immature internal management such as cost control, financial management and accounting, which leads investors to refuse to "pay the bill" on the grounds of unreliable financial model and poor information quality. Enterprises participating in investment and financing activities must provide high-quality financial information in order to gain the trust of investors. At present, there is no special accounting standard for cultural enterprises in China, which is one of the reasons why the financial information quality of cultural enterprises is relatively poor, the financial model is unstable and the development is not smooth.

The third reason is that at present, the scale of cultural enterprises is generally small, and there is no "holding a group" in "going it alone", which leads to a weak ability to "attract gold". Bing Lin believes that gathering similar enterprises through industrial parks to form a cooperative body may attract investors' attention.