The Study Of Broadening Financing Channels For Small And Medium Enterprises

The small and medium-sized enterprises (SMEs)are important powers innational economy and play strategic roles in economy develop in each country.International economy circles and academic circles consider that the SMEs will bethe leading roles in the 21century economy development. The functions andpositions of SMEs are outstanding in China, the biggest developing country in theworld. According to the statistics, the number of SMEs that registered is more thanten million till 1999.It accounted for 99.5%of the amount of the enterprises in thecountry. The industrial output value and revenue that the SMEs made account for60% and 40% of the whole country separately. Nowadays more than 110 millionlabors are working at the SMEs account for more than 73% of the number thatworking on the industrial enterprises. However the SMEs are still placed in theminority position in market compete; the obstacle faced in the development is more.So it is an urgent solved question in our new century.Starting from the role and function of SMEs, an introduction and review onpresent financing channel. From the development of above mentioned, it is obviousthat the insufficient of current financing channel and two financial gaps question. Itreaches a conclusion that it important to broaden the SMEs financing channel. Theauthor believes that it is a good way to fasten the development of SMEs that broadenthe direct financing channel, develop venture capital. After analysis of ShenZhenJinDie Software Company, we can come to the conclusion that the importance andfeasibility of developing venture capital. We will propose relative guarantee system.The thesis consists of three parts. As logic basic to study the question that howto broaden the financing channels, part one says briefly of the introduction andfunctions of the SMEs and analyse the present financing channels separately.There exists the financial gap in the development of SMEs. General theoreticalanalysis about financial gaps can be done through two aspects of loan finance andequity finance. The factors that induce the finance gap are the narrow financingchannel. To develop venture capital is the way to meet the financial gaps.Considering venture capital and growth enterprise market as the constituentparts of modern finance system, this dissertation mainly discusses the importantpromoting effect of venture capital.Part two, as the key part, aim at the introduction of the international andnational venture capital. The second part of this chapter, analysis of ShenZhenJinDie Software Company, we can come to the conclusion that the importance andfeasibility of developing venture capital. We will propose relative guarantee system.In the third part of the chapter, the whole characteristics of SMEs decide its choiceof finance style. Venture capital is the most important fund resource of SMEs .Firstly,...