Research On The Difficult And Solution Of Financing Situation Of Small Enterprises In China

Small enterprises play more and more important role in the, economy for both developed and developing countries. Small enterprises serve as an important force in promoting economic growth, technological innovation, job creation, and economic restructuring, which causes global and widespread concern from government, academic and industrial field. China has always attached great importance to small business financing, and national authorities have taken a series of measures and methods to deal with it. However, these programs often do not reach the deeper reason, and only exist as temporary solution. The issue of small business financing has not been effectively addressed, and in time of tightening of macroeconomic policies the issue becomes more serious.Based on the integration of literature, this paper establishes a logic systematic analyzing framework on the causes of small business financing and countermeasures, which fully reflects innovative theories and research methods while further improves and supplements this research. This paper comprehensive uses various effective methods of economic analysis, such as comparative analysis, theoretical models of economic analysis methods according to research. In specific study, theoretical analysis and empirical analysis are used in a combination. In the empirical analysis, the paper focus on the combination of qualitative analysis and the combination of descriptive statistics and econometric analysis method, which seeks to analyze the issue with great comprehensiveness and depth.This paper composes seven chapters:Chapter 1 is Introduction. This chapter discusses the background, significance of study topics, and research methods, summarizes the theory of literature at home and abroad, and comes up with the innovation of this paper and further research.Chapter 2 is small business financing and supply and demand dynamic game analysis. First, the chapter analyses modes of small business financing and financing major order, the different stages of development and different characteristics of small business financing in various industry; Secondly, the chapter analyses special nature of micro business financing; thirdly, the chapter analyses the money supply channel for small businesses, and compare different sources of transaction costs and funding availability; Finally, the chapter uses game theory to analyze credit behavior of commercial banks and small business theoretically and analyze mismatch reasons of capital supply and demand under both perfect capital markets and non-perfect capital markets conditions.Chapter 3 is China's small business financing conditions and constraints analysis. First, the chapter analyses the policy environment for small business financing and of the analysis of the overall situation of financing. Secondly, factor analysis is used to analyze the small business financing constraints from small businesses perspective and the financial system's perspective. Third, the chapter investigates the financing situation of small enterprises in Dalian and does relevant empirical research in order to support the result above.Chapter 4 is the comparison of small business financing support system between different countries and regions of the country and regional comparison. This chapter chooses the United States, Japan, Taiwan, China and other countries and regions as typical market and compares characteristics of financing system and policy support system for small business. First, the chapter analyses the U.S. small business financing market system and policy support system; Second, the chapter analyses the Japanese financial market system and small business policy support system features; third, the chapter analyses financing market system and policy support system in other countries and regions. The last part is the comparison and policy implications.Chapter 5 is case studies of Dalian City's financial institutions supporting small business. This chapter selects five typical banks as example, i.e. policy banks, state-owned commercial banks, joint-stock banks, regional banks and small city commercial banks. This chapter analyses initiatives and measures how each bank supports small business. Through the analysis of the five banks reviewed, the paper indicates the characteristics of each bank in supporting small business financing, which enriches the research content.Chapter 6 puts forwards multi-channel supporting system for small business financing. First, the chapter proposes to improve the institutional environment of small business financing. Second, on the analysis of completing indirect financing system for small business, the paper further proposes to build our system of direct financing for small business through regulating and guiding private financing, boosting the roles of guarantee institutions, and promoting financing tools for small business development and improving the support system for small business financing to alleviate the situation effectively.Chapter 7 is conclusions. The chapter summarizes the main findings of the full text, and makes conclusions of the study on micro-enterprises specifically.Through analysis, this paper may obtain the following three innovations:First, let private funds meet financing plight of small enterprises while guide and regulate it. Through analysis and comparison, the paper has proposed that one way to solve China's small and micro enterprises financing plight is to increase the formal channels of financing and to liberalize private financing moderately, so as to better meet the small cnterprises, especially micro-enterprise financing needs. It is noticed that large amount of private funds seek for investment channels urgently as China's economic development and private ownership of capital accumulation increases. In this trend, small and micro enterprise financing could be solved by private funds as a sort of "flowing water". It is not only necessary but also feasible to make the interaction between the need of small and micro-enterprise financing and the demand of private funds investment channels.Second, the paper proposes progressive programs and measures for the plight of small business financing in China systemically, and made many new theories. For example, the paper proposed that in the long term, small business credit franchisees of medium-sized bank should be gradually transformed into an independent local small business corporate bank, and that China's credit guarantee system for small businesses should reform from government guarantee oriented to commercial-based, and mutual -based security, supplemented by policy guarantee.Third, on the integration of domestic and foreign literature, this paper establishes systematic analysis framework for causes of the plight of China's small business financing, researches on small business credit in multiple level, and made many theoretical innovation. For example, in the first level of study, the paper analysis small business features and how information and legal environment affects a single "commercial" bank credit behavior. In the second level of study, the paper introduces financial management system, banking system structure as variables, relaxed the hypothesis of commercial banks''commercialese' and market structure's "competitiveness", and analyses small business credit behavior under the constraint of financial management systems, banking systems and other systems.The inadequacies of this paper is that the analysis on small business financing situation, causes and countermeasures of the empirical analysis is not sufficient, and that some arguments and conclusions requires further support data. In future's research, the paper needs to strengthen data collection and collation, which will make analysis of the conclusions more reliable.