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SMEs Loan & Credit Guarantee Disquisition

Posted on:2004-06-26Degree:MasterType:Thesis
Country:ChinaCandidate:G S YanFull Text:PDF
GTID:2156360092990959Subject:Business Administration
Abstract/Summary:PDF Full Text Request
In the view of development of global economy, the survival and development of small-and-middle-sized enterprise (hereinafter called "SMEs") is a key component of economy of all countries and also an common issue in the whole world. SMEs provide extensive job opportunities and are driving economic increase. Over 60% of job opportunities are provided by SMEs; SMEs are also the provider of social worthiness, over 40% of GNP is created by SMEs. Meanwhile, SMEs is the disadvantageous group in the social economy group. Comparing with large enterprises, SMEs meet many difficulties. According to the statistics of APEC, SMEs in the whole world basically have the following five major difficulties -market entrance limitation, financing, high-quality staff, information sharing and technology application. The survey of Economy Development Research Center of the State Council shows that Chinese SMEs have eight major difficulties -financing difficulty, heavy burden of the retired and laid-off, low proportion of sales to production output and limited sales channel, low technological level, imperfect financial environment especially the credit environment, lack of communication channel with foreign market, serious triangle debts, major competition measure is price competition. Although SMEs have many disadvantages and difficulties, politicians with long-term view pay great attention to the development of SMEs because the greatest contribution of SMEs to a country or region is to improve society stability. The practice shows that the extensive development of SMEs is the only way to ensure the possibility of sufficient employment.By analyzing the financing composition of SMEs, the article puts forward to the measures to solve the financing difficulty of SMEs, describes the economics theory of guarantee and analyzes the current difficulties of guarantee company andmeasures to solve these difficulties.The author's main work is to analyze financing composition of foreign SMEs to find out the gap and weakness of indirect financing of Chinese SMEs, to develop the linkage between financing system of SMEs and credit system of SMEs, to creatively work out the necessary condition of survival and development of guarantee companies and concrete operational model on the base of proposal of setting up Chinese SME credit and guarantee system by State Economy & Trade Commission in light of international practice. These ideas and views are of great direction significance to build up Chinese SMEs credit and guarantee sytem.Conclusion of this study is: financing difficulty of SMEs is the most critical problem of SMEs, building up SMEs credit and guarantee system is the most effective way to solve financing difficulty of SMEs, model of sharing risk between guarantee company and partner bank is the key element of success of guarantee company.The main composition of this article is as following: Chapter 1 - Introducing SMEs and its important function in national economy; Chapter 2 - Analyzing the financing composition and financing environment of advanced countries and China; Chapter 3 - Analyzing theory of credit guarantee and economics theory of guarantee company and analyzing the relationship between guarantee company and bank and developing the proposal of solving financing difficulties of SMEs by setting up guarantee company; Chapter 4 - Describing the function and significance of building guarantee sytesm by taking the example of Sichuan Provincial SMEs Guarantee System.
Keywords/Search Tags:Solve, Financing, Guarantee, System
PDF Full Text Request
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