Research Of Financing Supportive System For Small And Medium Businesses In China

Currently, small and medium businesses (SMB) have been taken as one of the most important parts of the modern economic body and will show more powerful competitiveness in the 21st century. The development of SMB has guaranteed the stead increase of common wealth & economy, which matters the reform of economic system. However, for SMB, focus on ownership, lack of resource, style of management and conditions of market etc., have led to low credit rating of SMB, which negatively affects their financing. So, many a country & area worked out several supportive policies, laws and institutions, setting up considerably complete supportive system for SMB's financing activities. But in China (mainland), the existing financing system for SMB is fragile and unsystematic. So, the topic, Research of Financing Supportive System for Small and Medium Businesses in China, was produced.Supported by the theory of transaction cost, the theory of modern corporate institution, the theory of modern finance, the theory of SMB and innovation, guided by systematic considerations, and with the study of the experiences from Japan, USA, Korea, Taiwan, the research is being advanced. Here, the financing supportive system for SMB is constructed, including financing system and credit guarantee system mainly, considering the reality, the future and the safety and the forward and backward avenue for finance capital.In this paper, the writer puts forward proposal to construct service center for SMB that may be centered to build financing supportive system for SMB. And the center willcover the functions of credit gathering, investment notarizing, financial intermediary, and trust investment etc. Here, through membership it will connect profitable functions with no-profitable ones, capital-demanders with capital-suppliers together. Thus, with credit information gathered collectively, financing avenues widened, rural financing regulated at some degree, for SMB the financing difficulties might be relieved.