Research Of Small And Medium Businesses Financing

Small and medium businesses are important forces of our national economy. With the establishment of socialistic market economy system, small and medium businesses increasingly manifest their vital importance. At present, the greatest difficulty with small and medium businesses are faced with is financing. Part I of this dissertation firstly defines some basic concepts, then analyzes the significant position of small and medium businesses. Finally discuss the reasons why small and medium businesses are faced with difficulties in financing. We attribute them mainly to inadequacy of capital supply sources and lack of financing support system. From the perspective of government Part II of this essay deals with the role of government in serving small and medium businesses financing service system should be established so that government can make a contribution to boost small and medium businesses. The support policy include the establishment of organizational support system, law enforce system, financing support system. Part III and part IV focus on indirect financing and direct financing respectively. In part III, we explore reasons that cause the difficulties in indirect financing, then present some suggestions to solves them. In part IV we discuss the necessity and feasibility of direct financing of small and medium businesses. Second, present three means of direct financing we conclude our essay with relevant solutions to boost direct financing of small and medium businesses.