Discussion About Indirect Funds-raising Of Small And Medium-sized Enterprises

The last 20 years has been rapidly developed in small and medium-sized enterprises(SMEs) since the reform and opening up of our country in a good environment ofmacro-economy, and which attracted world-wide concern. But there are still many problemsimpeding its development. Author takes himself into the interview of enterprises especially SMEs as a journalistof HBTV all the year round. And I know deeply about the problems in SMEs, among whichthe very important thing is "funds". So it holds very important meanings for promoting thedevelopment about economy and society of our country to study the problems of SMEs.This paper tries to find how to adjust the capital structure of SMEs in order to solve thefinancing problems SMEs face through analyzing the mode and structure of the indirectfund-raising and the connection between SMEs and the financial institutions. Author studies the present situation of SMEs on the basis of analyzing the financingstatus of SMEs, and analyzes the factors that influence the fund supply of SMEs throughcomparing that in foreign countries and taking advantages of modern indirect funds-raisingtheories. As far as I am concerned, a conclusion can be drawn that the funds of SMEsmainly got from internal accumulation and bank loan. There are many reasons for thefinancing difficulties of SMEs but the main three are as follows: First, SMEs suffer greatfinancing difficulties from the lack of credit of SMEs. Second, the reluctant of loan offinancial institutions that takes cost and risk into account. Third is the weak of governmentsupport on SMEs. So the ability of making profit and the credit level of SMEs should beincreased, and the information asymmetry between SMEs and their investors should bedecreased. The government should developed capital market in order to make SMEsfinancing capital from it more efficiently and easily, strive to accelerate the transfer from thesaving to investment and increase the efficiency of capital allocation. The aim is to improvethe surrounding of financing capital for SMEs, to perfect their financing structure and torelieve the financing straits they are suffering.