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Study On The Small And Medium-sized Enterprises' Financing Problems In China

Posted on:2004-11-01Degree:MasterType:Thesis
Country:ChinaCandidate:C M ZuoFull Text:PDF
GTID:2156360092990291Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
Known as the most active economic cells, Small and Medium-sized Enterprises(SMEs) are of great importance to the development of economy and social stabilization. However, own to the characteristic in themselves, they are in inferior position in the competition with large-scaled enterprises. Therefore, the governments of many countries put enormous emphases on the establishment and perfection of SMEs' policies, whose core is the establishment and perfection of their financing system. The number of SMEs in China is 99% to all the enterprises and 57.1% saleroom has been supplied by them. At the same time, they have afforded 43.2% revenue and 69.7% occupation. Nevertheless, hard financing has been a bottleneck to their development.The main reason of SMEs' hard financing lies in the drawbacks in property rights and financing system. In order to alter SMEs' inferior position and boost up their ability to competition, it is obligatory to perfect the financing system of SMEs. In this way, not only the SMEs' capital scarcity can be solved, but also they can be led to sustainable development with high efficiency through the transfer of finance resource allocations. The construction of the financing system of SMEs is a systemic project, which needs cooperation, harmony and promotion among government, enterprises and financial institutions.The main contents of the thesis are as followings:1. The general academic analysis of SMEs' financing. To define the SMEs, these factors as employee, capital and turnover should be considered. The conception of financing has broad sense and narrow sense. The thesis will analyze it from narrow sense, that is to say, it will investigate financing problems of SMEs from the area of source of capital. The traits of capital demand distinguish notably in various development phases of SMEs.2. Economy system determines SMEs' financing behavior. In planned economy, it is a "big finance, small banks" pattern, in which financing comes mainly from finance appropriate funds; and in dual economy, financing is mainly from banks' loan, in which trade credit, employees' money collection and non-government debit and credit are accessorial. Through the institutional analysis on SMEs' financing, conclusions can be made that China should construct integral SMEs' financing system by the government.3. The analysis on the status quo and cause of SMEs' financing. In China today, the lack of available capital is the main hindrance to SMEs' development. Owing to the restrict of economy, law and financing conditions, SMEs have great difficulties in obtaining capital from financial institutions and capital market. In macro sense, SMEs are lack of internal financing. In a financial system that mainly based on banks of highlycentralized, SMEs are devoid of suited banks for lending. And then it analyzes the financing conditions and problems of SMEs from micro sense through survey on SMEs' financing. Here are the causes of hard financing: the SMEs' low credit, unreasonable financing system, irrationality management on banks' credit and distemperedness of credit assurance system.4. International comparison between SMEs' financing systems. It has gained experienced support to the construction of the system from the following factors: exterior circumstances benefit to their development, the construction of policy financing systems and institute commercial financing supporting systems.5. The construction of financing system of SMEs in China. These principles should be followed: in proper sequence, the equal between lawmaking and construction, the even between system and content, the combination of policy support and market-oriented operation. The financing system of SMEs should be based on internal financing, magistral to policy financing, major in commercial finance and accessorial to cooperative financing. For the well operation of the financing system, it is necessary to perfect law system, level up supervisory organization and alleviate tax. And at the same time, the government should give fina...
Keywords/Search Tags:Small and medium-sized enterprises, direct financing, indirect financing, internal financing
PDF Full Text Request
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