Small And Medium-sized Enterprises Financing Research

Like large enterprises, small and medium-sized enterprises(SMEs) are indispensable component of modern economy. They are playing a unreplaceable role in increasing employment, animating market, raising income, stabilizing society and forming healthy national economic structure. In a sense , the extent that SEMs have developed indicates whether the market is active or not. With China's entrance into WTO and the deepening of economic liberalization and globalization, SEMs in our country are involved in sharp competition and strict challenges. It is an impeding task for our government and economists to answer the question that how to create favorable developing environment for the SEMs. In contrast to large companies ,one of the problems that are blocking the advancement of SEMs is financing dilemma.On the basis of putting forward the general theory, the article discusses and analyzes the current financing situations and problems of SEMs in China. First, the article explains the definition of SEMs and financing methods often adopted by SEMs, then it gives the financing characteristics of SEMs. Second, it further analyzes the current financing situation in China and illustrates that many SEMs are confronted with financing difficulties during their development in China. Third, according to the traditional theoretic analysis and our particular national situation, the article goes on into the concrete reasons of financing difficulties existing in direct and indirect finance in detail. The fourth part of the article introduces valuable experience that some countries such as America, Japan, Italy, have in constructing SEMs financing system of their own and generalizes the common points from the introduction. Last, it provides us with effective policies that we should adopt in working out the difficulties faced by SEMs in direct and indirect financing channels, that is establishing indirect and direct financing systems accompanied by related service systems which can satisfy the peculiarities of the SEMs in our country.