Study On The Small And Medium-sized Enterprise Financing Difficulty And Institution Innovation Of China

Since the reform and opening up, China’s SME have developed rapidly and played crucial socio-economic role. SME are irreplaceable in promoting technology progress, expanding international trade, attracting social employment and boosting economic growth etc. SME financing, however, is a world-recognized problem. Especially in current competitive situation of China, numbers of SME make the financing problem more serious and their solutions are pressing.Currently, affected by the international financial crisis, the world economy as a whole is in decline, and uncertainty of China’s domestic economy is also increasing. Strengthening risk prevention and optimizing the credit structure are becoming the primary tasks of the commercial banks and financial institutions. Under these external environment pressures, many SME are not only facing with the hard situation of benefits decline and operating difficulties, but also facing with the great danger of funds strand breaks. In the unfavorable internal and external backgrounds, it’s necessary and essential to have a re, profound scrutiny at the SME financial difficulty. By the scrutiny of SME financial problems, combining with measures having been or will being taken to improve the SME financial situation, ways of changing the single mechanism innovation through cooperation among government, enterprises and banks, enhancing SME credit willing and abilities and easing the financial difficulties fundamentally were explored. This exploration has important practical significance on promoting the stable and rapid development of the SME and our national economy.The scholars are enthusiastic on the financial problem research, resulting in a large number of literatures. These literatures, however, are often starting from single aspect of SME themselves, and discuss the financing cost and benefit, structure and efficiency and channel and innovation which related in SME financial process in a single plane perspective. Systematic and comprehensive literatures researching on the SME financing are still lacking. To establish and perfect the SME financing supporting system, systematic construction concepts should be introduced; combining with China’s actual condition, the multi-level, multi-lateral financing system with Chinese characteristics should be established; system combining with indirect and direct financing and ways of endogenous financing should be built; the debt and equity financing ways, SME credit guarantee system and government policy supporting system should be optimized; deepen the financial reform and prove the necessary financial support for SME’ rapid growth. Therefore, the study of Chinese SME Financing Difficulty and institutional innovation has a very important theoretical significance.This paper makes comprehensive profiling studies of China’s SME financing problems,so as to give constructive suggestions to SME financing.