On Financing Of Small-and-Medium-Sized Enterprises In China, With Government Support

Owing to the importance of small-and-medium-sized enterprises in employment, technology innovation and growth of economy, to develop the small-and-medium-sized enterprises has the special purpose in China. Lack of finance has been the bottleneck for the development of small-and-medium-sized enterprises, which is common around the world. The present study lists the performances of the lack of finance, and analyses the problem in view of property right, credit guarantee and risks. And it also points out that the nature of financial difficulty is the market disorder. At the same time, due to its externalist of revenues, like public service, it is decided for the government to infere and supports the financing of SAME through various official policies. In the end, the writer suggests several measures (e.g, low protection, transformation of property right, finance support, credit guarantee, looseness control on interest rate, public service) should be taken to settle the problem and to promote the development of small-and- medium -sized enterprises.