The Research of SME Financial Crisis Warning Model Based on Neural Network

Abstract

SMEs (Small and medium-sized enterprises), as an important part of national economy in our country, play an irreplaceable role. With the development of the economy, SMEs are facing both opportunities and fierce competition. Compared with the mature companies, SMEs have their own features, such as the weakness of the ability of resisting risk, the lacking of capital, deficiency in the ability to raise funds and etc. Therefore, in the complex environment, a more suitable financial risk early warning system is needed. In this paper, such a financial crisis early warning model of SMEs was established, focusing on the characteristics of the SMEs, selecting the data from the SMEs listed in the stock markets in Shanghai and Shenzhen from 2011 to 2015 as samples, choosing 13 financial index input values, finally using the neural network tool in Matlab 2012b. The result displayed that the model is suitable for SMEs, and the accuracy is high.