Legal Problem On Financing Of Small And Medium-sized Enterprise

The policy of opening and reform has promoted the rapid development of economy in China, especially the development of the small and medium-sized enterprises whose total number is about 10 million. The small and medium-sized enterprises which have resisted in the Body of Industry and Commerce are more than 90% of all the enterprises which has resisted. The Small and medium-sized enterprises play an instead able role in promoting employment, technology creation, export increase and promoting regional economic development. At present, the transform of economy structure tends to service industry which is good in form of Small and medium-sized enterprises .However, the currency market, capital market and national finance have not developed enough and have not established a set of policy and administration system which match the market-oriented economy. The financing difficulty which has not resolved is the common problem of all the Small and medium-sized enterprise.The paper is divided into three parts. At first, this article introduces the basic theory of small-and-middle-sized enterprises financing: integrating theory with practice, confirms the legal definition of small-and-middle-sized enterprises and explains the related concept financing and finance system. Then introduces the difficulty of small-and-middle-sized enterprises in details. In the part of direct financing, the law put the small-and-middle-sized enterprises in difficulty of listing, check issue, risk investment and overseas listing. In the part of private financing, the lack of legislation makes small-and-middle-sized enterprises in dilemma. In the third part of the article, the author analyses the legal trouble and advises to establish a perfect system of financing. In the part of direct financing, multi-sized capital market should be established and second board market should be regulated in order to help small-and-middle-sized enterprises. In the part of indirect financing, the relationship between banks and enterprises should be regulated, small-and-middle-sized financial structures should be developed policy banks should be established and financing system should be perfected. In the part of private financing, we should study the foreign experience and establish small and medium-sized investment enterprises so that the private capital could play an active role in resolving financing difficulty of small and medium-sized enterprises.