Study On Financing Problems Of Small And Medium-sized Enterprises

Hard financing of small and medium-sized enterprises is the world difficult problem that puzzles the economic theoretical circle, business circle and correlated departments of government in every country. In our country, this problem is more distinct because of the special historical background. Since small and medium-sized enterprises play an important role in economy, it is an urgent task to study small and medium-sized enterprises' financing problems, help widen their financing channels, and tackle their financing difficulties. Solving financing difficulties in small and medium-sized enterprises will not only accelerate small and medium-sized enterprises' development but also promote the whole national economy.How to definite small and medium-sized enterprises and have better understandings of their role in economy? How and why does capital structure and financing modes influence financing efficiency? What can we learn from the west capital structure theories? Why should governments support small and medium-sized enterprises? What are the current difficulties that small and medium-sized enterprises face in the fields of their financing? And for what reasons those difficulties happen? This paper is aimed at these problems, and puts forward some practical and valuable countermeasures.This paper comprises 7 parts:Part one clarifies such questions as why we choose this subject as our studying object, what we have achieved in this studying fields and which contents we will study in this paper.In chapter 1 (part two), the definition of small and medium-sized enterprises is discussed from the viewpoints of "Quality" and "Quantity". Relating to Chinese actual conditions that labor resources are abundant, it argues that the definition of small and medium-sized enterprises should mainly contain three aspects: Worker's number, Sales amount and Assets total value. Finally, in order to understand the importance of the financing problems of small and medium-sized enterprises clearly, chapter 1 points out their important status and functions.Chapter 2 (part three) deals with corporate financing modes and corporate capital structure theories, which give theoretical supports for the empirical study. It explains that the real process of corporate financing is the allocation of social resources. Funds raised through different financing ways will have different financing cost and financing risk. Therefore, the efficiency of corporate financing reflects the efficiency of allocating social resources. Then, it reviews and evaluates the development of capital structure theories. It points out that in pursing the goal of maximum corporation market value, the sequences of rational financing is internal fund-raising, borrowing, bonds and stocks, if taking intoconsideration the effect of bankruptcy cost, agency cost, information asymmetry, etc..Chapter 3 (part four) carries on the discussions to characteristic and efficiency of financing of small and medium-sized enterprises. It states the financing characteristics of different kinds of small and medium-sized enterprises, puts forward the ideas that different developing stages should adopt different financing channels, and from the view of information asymmetry, it also explains the deep reasons why it is difficult to loan and guarantee for small and medium-sized enterprises. From the view of new institute economics, it analyses the necessity of government to support small and medium-sized enterprises' financing. On the basis of comprehensive analysis of corporate financing theories, utilizing the fuzzy comprehensive evaluation, linking to our country's special conditions of transition from planned economy to market economy, chapter 3 arranges an order of financing efficiency according to different financing ways of small and medium-sized enterprises. In terms of financing efficiency, inner financing is superior to indirect financing, and indirect financing is superior to direct financing. But enterprises' choice of financing channel is a multi-goals decision-making pr...