Research On Financing Of Small And Medium-Sized Enterprises

Since the carrying out of reform and open up policy, small and medium-sized enterprises have achieved a rapid development. With the great quantity of 99% in the whole enterprises of China, small and medium-sized enterprises form the huge and continuously developing colony that plays quite an important role in our national economy. Though comparatively backward in scale, technology, management and personnel, such enterprises are proved to having provided more than half of the GNP in China. However, since the small scale, few capital, high risk and unsteady financing resources, these enterprises usually face great difficulty in financing. Problem in financing has become a bottleneck restricting the development of small and medium-sized enterprises in China. In order to supply various theoretical supports to the development of such enterprises, economists all over the world deem this a focus of attention. Under such background, I chose the financing of small and medium-sized enterprises as the objective of my research project. In order to go deeper into the understanding of the problems existing in the financing process of these enterprises, and in order to find the possible solution, I collected a great deal of information and data, analyzed the financing channels and experiences abroad, researched the concrete methods fitting for China, and finally accomplished this thesis.The whole thesis consists of four parts. Chapter 1 is the outline of the financing of the small and medium-sized enterprises. In the first section of this chapter, I defined the small and medium-sized enterprises and emphasized the status and function of them. Then I employed the methods of econometrics to construct a relative model so as to analyze the problem more thoroughly. All these review the importance of such enterprises in our national economy and show the necessity of analyzing this problem. In the second section of chapter 1,1 research and comparedthe American pattern and the Japanese pattern. Then as a key step, I discussed the primary financing resources and the advanced experiences abroad for our reference. In chapter 2 that is divided into 2 sections, I investigated and did research on the actuality of a great amount of phenomena. I found the system restriction in the financing of small and medium-sized enterprises. Capital market cannot provide the proper financing services for such enterprises during its operation. Moreover, intensified state has existing for a long time between such enterprises and the banks. Whereat section 1, in section 2 of chapter 2, I did research on a deeper level on the causes of the above mentioned problems. I mainly analyzed such enterprises' dual-gap and structure in financing. And after that, I found the unsymmetrical information, the limited guarantee system and the imperfect market system as the concrete reasons for the financing problems. Through the researches in the two chapters ahead and after the consideration of the concrete situation of such enterprises in China, I spread my discussion, in chapter 3, respectively from the aspects of finding more financing resources and perfecting the financing circumstances, and then provided the countermeasures and thoughts for improving the financing actuality. Thus, the objective of the whole thesis was ultimately achieved in chapter 3. Finally in the tag, I simply analyzed the influence of WTO accession on the financing of small and medium-sized enterprises in China and then gave some possible solutions. To sum up, the major viewpoint of this thesis is as follows: The status and function of the small and medium-sized enterprises are more and more obvious in the modern economy. Nevertheless, the support of financing they can get from the main sources is not in proportion to the great contribution they've made to the national economy. In order to help the small and medium-sized enterprises in developing more smoothly, we must understand afresh the status and function of them and carefully discuss, research and solve the problem existing in both t...