Study On Financing Problem Of Small Business In Our Country

In the light of the inadequate valid demand, the successive sliding growthrate of economic and the large number of laborers out of job in China causedby financial crisis in 1997 in Asia, China brought up an idea to exert greatefforts to support small business. Furthermore, Chinese entry into WTO, theglobe economy transforming into an organic whole and the great developmentin west China all imply that China is opening for overseas wider, and theconstruction of market-oriented system and modern industry system isentering a new century. Small business used to play great role in Chineseeconomy due to their agile operating and more ability to innovate. Todaythey are faced with difficulties, which restrict them to grow anddevelop .The worst of all is the difficulty to finance. Therefore, it isof great importance to construct a financing system to give service to smallbusiness.In order to probe into the questions and the reasons why it is so difficultto finance for small business, and to bring up countermeasures to overcomethose difficulties, the paper consists of seven sections:Part one. Introduction:Part two. Basic financing theory of small business;Part three. The present financing situation of small business in our country;Part four. Financing approaches and financing courses;Part five. The financing environments of small business in our country;Part six. The countermeasure and proposal to establish the financing systemof small business in our country.The paper may innovate in three aspects:First, in the analysis about the financing difficulties, the paper analyzesby the means of the supply and demand of capital.Second, in the matters of the financing approach and the financing course,the paper goes deep into their difference and liaison, and clarifies thechaotic situation when they were used in the past.Third, the paper goes deep into the characteristics and the functions of small business in our country, and brings up countermeasures and suggestions to establish the financing system servicing for small business in our country.