My Finance Journal

There are so many questions from SME businesses that are looking for debt finance of some sort or another. Valuable time is wasted by SME stakeholders trying to source the right deal from the right people at the right price for the right reason. It can be a minefield which may not be as desperate as leading to a company downfall but lack of funds not available within a reasonable timeframe can spell the beginning of missed opportunities, months of struggle and eventually an insolvency disaster waiting to happen.

What is the finance for?

Be clear on what you want your finance for. If you are looking at:

* Working capital* Expansion – skills, diversification or perhaps acquisition* Development of ideas * For use in the actual product or service * Proving the market* Proving the product

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The economic growth in India is on a rampant move with Mr Pranab Mukherjee hoping the gross domestic product to reach 9 per cent as he said while addressing the India Economic Summit (IES) 2010.The economic growth in India is all set to surpass the developed countries as it rides high on back of manufacturing and an overall positive investment climate in India. The companies in India are all set to harness the potentials being created by the robust economic growth in India. The foreign companies in India are glad to be part of the investment climate in India, as the economies of the developed countries struggle to stay intact.The investment climate in India is also representative of the growing Indian economy and the prospering business opportunities in India. The soaring sales being highlighted by the companies in India are reflective of the potentials of the investment climate in India. The investment climate in India is very much dependent on the consumer and the Economic Growth in India is boosting on basis of the latter.

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Nowadays, the National Bureau of Stats will release the main macro-financial info in April, though the major institutions are expected to have a extremely nice macro-economic information, but some foreign specialists trotted out the “China collapse theory”, whilst many domestic economists also publicly said that with the gradual disappearance of the result of stimulating investing and get measures to curb genuine estate speculation and other overheated, about to announce a significant quantity of month-to-month financial information may possibly demonstrate that China’s expansion momentum will have started to peak.     Slowing financial growth in the chain     In the April forecast of economic info, several economists predict the information published more than the prior year will be substantially enhanced, but this is primarily based mostly on final year’s low base, is also likely to cover up the truth that the slow growth of the chain.     UBS economist Wang Tao in Beijing (blog) said, April’s industrial manufacturing growth fee could be only 18%.

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The whole world is witnessing a major low as regards economy. Most of the countries in the world be it the developed, the developing or the underdeveloped are facing difficulties in tackling issues like inflation, and regression. Sadly enough it is the common man who is bearing the brunt of this state of affairs. And one can’t really blame the governments also. They are trying their best in order to bail out their citizens from this grim state of political affairs. The situation has become worse for the under developed nations. They already have a below par economy and on top of that are confronted by these economic instabilities. Talking about the underdeveloped nations a very interesting and at the same time a very saddening fact as regards the underdeveloped nations is that most of the Muslim nations of the world belong to this category. Around 80% of the Muslim countries find themselves in the list of the underdeveloped nations. Muslim countries have almost come to be characterized by their economic jeopardy and political disturbances.

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1, Lishui, Zhejiang, bred a new economic growth point of the environmental analysis
1. And good policy environments, exogenous increase in power is relatively strong. 10 Plenary Session that “five co-ordination” reform is bound to put a series of less-developed areas is conducive to speed up economic development and alleviate the financial burden of the relevant supporting policies, indeed a lot of good development will bring new opportunities.

2, resources, better conditions, congenital growth in power is relatively strong. Lishui abundant mineral resources in the region, rich in biodiversity, history and nature, also gives the Lishui area rich tourism resources. Lishui has a large amount of per capita land area, labor is relatively abundant, cheap labor, cheap land and other production factors; electricity, water conservancy, transportation and other infrastructure costs are lower, is conducive to competition in the market to achieve price advantage.

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After joining the world trade Organization in 2001, China’s economics growth is always brilliant. March of 2007 is to be remembered as the great property revolution turning point for China. China’s Authorities declared legal to protect individual property, which is a great step ahead for China’s economic growth which was based for decades on collective or public property.

Even though rural areas are under the old property legal system, the fact that the National Popular Assembly voted almost unanimously the Law of private property revolution, indicates that China is becoming more integrated into capitalism and into the Global Economy. Prime Minister Wen Jiabao regarded the property revolution as the “great jump” as a way to change from the days of instability and lack of productivity, into a new order where quality products and high levels of productivity are mandatory. The financial situation of state owned companies and the sagging contribution to employment has become a great concern for China’s central government.

Since 1978 for China’s economic growth, the government of the People’s Republic of China is reforming its economy from a Soviet style centrally planned economy, to a market oriented economy within the political framework of the Communist Party of China. China’s economic growth is helping to bring down the poverty levels, from 53% in 1981, to less than 8% nowadays. However, Chinese prosperity is still concentrated in the coastal and southern provinces, while efforts are being made to expand the prosperity to the inner provinces and the industrial northeast. Foreign trade and investment are helping increasing levels of income, consumption and productivity. The government is focusing on foreign trade as a way to promote China’s economic growth. China’s economic growth is so strong, that it is the first in the consumption of aluminum, steel, copper and coal and the second biggest consumer of oil in the world. With a cheap labor force of more than 800 millions workers, China’s economic growth potential is huge. Compared with developed countries, China lags behind in areas of science, technology, management, ecological environment protection, educational quality and organizational levels. Joining the world Trade Organization is paying off for China’s economic growth, as foreign direct investment is surging.

With China’s economy growth rates over 10%, and exports growth at a steady pace, the future is promising for the new member of the Capitalistic Club. Even though there are many countries feeling threatened by China, we have to admit that there is a new great door to opportunity being opened to industrial and trade investors around the world.

INTRODUCTION AND THEORETICAL BACKGROUND

Economists through out the world are searching for what really are the major determinants of growth of an economy and different policies have been used in pursuit of the answers. The world as large has gone through a lot of economic problems, such as depressions of 1930s, 1970s and 1980s. The 1930 depression led to employing of the Keynesian policies of strict government intervention. However, the 1970s depression made policy makers lose faith in Keynesian economics. Nevertheless, most Third World countries continued with their central planning type of economic policies. There was strong disenchantment with this type of policies, which led growing number of economists and influential international development organisations to begin, in recent years, to advocate the increased use of the market mechanism that is to liberalise the markets, as the key instrument of promoting greater efficiency. In this regard economic liberalisation implies minimisation of government intervention in allocating economic resources and letting the market forces play the cardinal role, doing away with all forms of government distortions in running the economy. The market forces should play a leading role in financial, trade, labour, commodity markets and other sectors, increasing reliance in market forces is normally accompanied by stabilisation programs, (Krueger 1978,1985).

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