Study On Financial Support To Macau's SMEs

As the small and medium sized enterprises (SMEs) have made indispensable contributions to the development of Macau-Mini-Economy, it has significant impact on the Macau economic stability if SMilEs could get growth healthy. Recently, SME抯 financial difficulty becomes a brake on their development. Due to the weakness of SMEs?nature of organization, it cause s some restrictions on getting finance from the banking sector, and in addition to the simple structure of Macau Financial System, SMilEs have no direct access to the capitial and money market therefore suffer from chronic undercapitalisation. Base on broad review of literature, and from the results of the research and case description, I try taking a deep consideration in every aspects of financial problems occurred in the part of Macau?SMEs and bringing up some new ideas to our government for future improvement. The research shows that the SMEs?financial problems are caused by two aspects: 1 .Asymmetric information between banking sector and enterprises; 2.Weakness of SMilE抯 nature of organization. To improve the financial environment for the SMilEs, the Macau Government should develop some new industries and financial policy, as well as , act as an agent for the banking sector, in giving their financial supports and subsidies to the SMIEs which are helped to grow and develop healthily and steadily, and become an competitive industry.