Small And Medium-Sized Enterprises Financing Issue: Theory And Empirical Study

Because Small and Medium-Sized Enterprises have relatively small scale and weak economic strength, governments of all the countries have not attached much importance to their development for a long time. In 1970's, after the outbreak of the oil crisis, the European and US governments gradually started exerting efforts to support the development of SMEs. Owing to the effects aroused by the mode of industrialization of large enterprises in the planned economy, the Chinese government has been paying attention to the development of the large enterprises and neglecting the promotion of SMEs. Not until the 1990's did the Chinese government begin to think much of the development of SMEs. During the process of developing SMEs, the most difficult problem is financing. Due to the attitude of the government, the academic has not paid much attention to SMEs'financing issue At present, the study of this problem is not systematic, thorough or mature totally, and should need further study. The foreign documents mainly discuss the problem in financing for SMEs in the developed countries, but their research is incomplete to the actual situation in China. Most of the domestic literature gives priority on the study of the cause of the problem and the macro countmeasure, so the research is not sufficient.This thesis firstly coordinate the present theories of financing for the enterprises. Marx's theory of financing for the enterprises mostly studies it based on the evolvement of credit regulation during the development of market economy, and is, to certain extent, abstract and commonly adaptable. The capital structure theory in the West analyzes the action of financing in a micro sense through the effects to the capital structure and the market value of the enterprises caused by the different selection of the forms of financing. This theory is based on the study of the large enterprises, so it is not totally adaptable to the framework of the study of financing for SMEs. Theoretically, the analysis framework of one of the new capital structure theories-Myers' New OptimizedOrder financing Theory, is comparatively adaptable to financing for SMEs, but it belongs to the static investigation of the problem, while SMEs are a group with potential high growth, and they have different requirements and favour for financing on each growth stage, ie their growth period has a dynamic characteristic.Most of Township and Village Enterprises are medium and small ones. TVEs in Fujian Province ard relatively developed. Their financing is rather representative among China's SMEs. Based on the theoretic analysis, this thesis concentrates on investigating the concrete situation of financing for SMEs by taking TVEs in Fujian for example. It comes to the following conclusions: The changing of the ownership of TVEs have the origination from financing. Currently the ownership of TVEs become clear, so the systematic advantages have disappeared. In the market economy, they can suffer the difficulties in financing as easily as the other SMEs recently, the efficiency of the capital of TVEs has apparently declined. The contribution of the flowing capital to the net profit has decreased, while the long-term capital like the fixed assets has kept at a comparatively high level. TVEs are lack of the long-term capital than the short-term capital, and among the long-term capital, they prefer equity capital, then consider the long-term loan. The shortage of the long-term capital demonstrates that the difficulty of financing for SMEs does not lie in the shortage of the capital but in the narrowchannels of financing.The narrowchannels of financing reflects the regulatory defect of Chinese financial System and setup. Thinks to the historical factors, the establishment of Chinese financial system is outer-generated character called "government-leading regulatory transformation", which lacks "demand-causing regulatory transformation" formed by the market spontaneously. The major supplier of regulations is the government, not the the market, so when the market fails to...