Research On Small Business Financing System In USA

The target of the construction of SMEs financing system is to encourage the financial resources effectively configuration,realizing the maximization of the social overall benefit.The common financing difficulties of SMEs all over the world,its basic reason lies in the problems of asymmetric financing information and high transaction cost which need to be overcome by spontaneous market regulation;SMEs are important strength of creating jobs,promoting technological innovation,stabling foundation of the national economy,no one country can afford to neglect the survival and development of SMEs.So,it is a market failure problem that the market regulation could not continue to increase allocations to SMEs and to maximize the social overall benefit.The problem should be governed by the mandatory policy intervention of government.Therefore,the construction of SME financing system should overcome the problems of asymmetric financing information,high transaction costs and market failures.It could solve the problem of financing difficulties of SMEs and realize the maximization of the social overall benefit finally.The small business financing system in USA based on the most developed capital markets all over the world and the productive intervention mechanism of the U.S.government,gives full play to the dual role of market regulation and policy intervention in the process of the revival of small businesses,better meets the financing needs of small businesses,especially the high-tech,high growth small businesses.As a result,the USA has built a normal form of SME financing system which could better solve the problem of financing difficulties of SMEs.This research attempts to explore the beneficial enlightenments for the construction of the SMEs financing system in China from the construction experience of the small business financing system in USA,in order to effectively relieve the problem of financing difficulties of SMEs in China.This paper divides the financing channels of SMEs according to the nature of financing rights and structures the frame of the SMEs financing system based on the division.So the SMEs financing system is divided into debt financing system and equity financing system.First of all,the essential ways to overcome the problem of financing difficulties of SMEs which exists in the debt financing and equity financing channels is analyzed.Then,using empirical analysis method,the paper should be started respectively from debt financing system and equity financing system and centre on the essential ways to overcome the problems of asymmetric financing information,high transaction cost and market failure,take trend analysis,comparative analysis,structure analysis and other research methods to analyses the operating mechanism and financing effect of variousfinancing methods or policy interventions,focus on the innovation,improvement and adjustment for overcoming the three problems.Finally,based on the research results of small businesses financing system in USA,combining with the reality of SMEs financing system in China,the paper extracts and purifies a series of enlightenment from the American experience to the construction of SMEs financing system in China respectively from three aspects such as the Chinese SMEs,the investors of SMEs and the government.These revelations mainly include three aspects.The enlightenment to China's SMEs includes occupying and keeping the financing competitive advantage and abiding by integrity;actively cooperating with the investors of SMEs to collect the information needed for the financing decision;focusing and striving for the government policy of financing support for SMEs.Beyond that,China's high-tech SMEs should try to keep the enterprise innovation vitality,and make full use of the existing financing platform and intermediary service platform to improve the efficiency of information transfer,and follow the internal operation rules and laws of capital market for extra capital market financing opportunities in the competition.The enlightenment to China's SMEs includes adopting the positive method to overcome the problems of information asymmetry and high transaction costs in order to improve the efficiency of relational financing mechanism;changing the concept of investment in SMEs and straightening the long-term investment strategy goal;improving their professional quality and investment management ability and reducing the decision-making errors and reducing operating cost of financing mechanism;ensuring that the investment behavior accords with the running law of the financing market for SMEs,timely strengthening the management of investment risk and improving the efficiency of information collection and transmission.The enlightenment of policy intervention mechanism to Chinese government includes perfecting the aid and support laws and regulations system for SMEs;establishing special government management and service department for SMEs;planning the financing policy intervention mechanism for SMEs according to the degree of market failure.The enlightenment of established institutional arrangements for SMEs financing system to Chinese government includes building the small and medium commercial bank mode which could stimulate relational lending;cultivating the high-yield bonds market appropriately for the high growth SMEs;guiding the private capital to construct the angel capital financing market of specialization;supporting the venture capital institutions to development the venture capital financing market for marketization;building multi-channel,multi-level equity market stage by stage.