Discussion On The Risk Of SME (Small & Medium Enterprise) Financing Financing

SME are always faced with difficulty in financing during their development. SME have great management risk because they are usually of little scale and feeble in keeping them from risk. Superadded that there are some problems such as irrational financing structure and serious information asymmetry occur in SME financing. All these bring on great risk in SME financing. Under the condition of market economy, the great risk is one of the important reasons that bring on SME financing difficulty. On the other side, financing difficulty pricks up the SME financing risk further more. By discussing on the risk of SME financing, the author analyzes the cause of formation of SME financing risk in theory with game theory and other methodology. And aiming at the feature of Chinese SME financing problem and financing structure, the author analyzes the cause of formation of Chinese SME financing risk under special system and at special era, and finally put forward some suggestions to set up management system of SME financing risk in China.