Based on the source channels of financing for small and micro enterprises, financing for small and micro enterprises can be divided into endogenous financing and exogenous financing. However, whether it is endogenous financing or exogenous financing, the supply of funds for small and micro enterprises is only a drop in the bucket. Insufficient endogenous financing. At present, the development funds of most small and micro enterprises in China mainly rely on their own accumulation, especially in the initial stage, the registered capital is basically their own funds, few enterprises can raise funds through formal channels, and the government support they can get can basically be said to be completely absent. In other words, endogenous financing plays an important role in the financing of small and micro enterprises. However, the profit margin and accumulation period of small and micro enterprises are also quite limited. According to statistics, 26% of the funds of private enterprises in China rely on the funds accumulated by internal retained earnings, and the proportion of small and medium-sized enterprises in private enterprises is higher. In addition, since 20 10, all regions in China have successively raised the minimum wage standard of enterprise employees to a certain extent, which has increased the overall cost of China's labor force and further increased the operating costs of enterprises. In addition, due to the difficulty in recruiting workers and the massive loss of labor in recent years, many small and micro enterprises are forced to provide higher wages to reduce the number of brain drain.
What are the benefits of endogenous financing for listed companies?
Endogenous financing mainly refers to the company's free funds and funds accumulated in the process of production and operation, that is, cash is formed through depreciation, and the company's capital is increased through retained profits. Because financing is carried out within the company, there is no need to actually pay interest or dividends outside, which will not reduce the company's cash flow; At the same time, because the funds come from inside the company, there is no financing cost, so the cost of internal financing is much lower than that of external financing. Endogenous financing is primitive, autonomous, low-cost and risk-resistant, and it is an important part of the company's survival and development. Therefore, listed companies should fully tap the potential of internal funds and other resources, such as reducing production and operation costs and creating more profits; Reduce inventory, compress working capital, and rationally operate internal funds of the company, such as providing funds to each other between the parent company and subsidiaries, and selling idle assets of the company to raise funds.
I hope the above content can help you. If in doubt, please consult a professional lawyer.
Legal basis:
Article 92 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
The qualified small and low-profit enterprises mentioned in the first paragraph of Article 28 of the Enterprise Income Tax Law refer to enterprises engaged in industries that are not restricted or prohibited by the state and meet the following conditions:
(a) industrial enterprises, the annual taxable income does not exceed 300 thousand yuan, the number of employees does not exceed 100, and the total assets do not exceed 30 million yuan;
(2) For other enterprises, the annual taxable income does not exceed 300,000 yuan, the number of employees does not exceed 80, and the total assets do not exceed100,000 yuan.