The Nongovernmental Financing Dilemma And Legal Countermeasures Of Small And Medium-sized Enterprises

Financing dilemma in small and medium-sized enterprises (SMES), as a global topic for discussion, has received extraordinary concern for each government. The difficulties which come up and the measures that should be taken are extremely different in various countries or regions. The problem shows particularly outstanding in developing countries. China, as one of the biggest developing countries, has affirmed the status of SMES in Market Economy. Because of the rigid ideology of governance in the era of Planned Economy, available laws and regulations and financial system can not make an excellent financing environment for SMES, whose enormous potential of stimulating economy, creating jobs, enhancing revenue has not brought into full play. Financing dilemma has become a serious obstacle that restricted SMES to develop rapidly and healthily.In this paper, the guiding ideology about the research to nongovernmental financing of SMES is "grooming". On the basis of a clear distinction between nongovernmental financing and the illegal financing, it should perfect laws and regulations to give a legal status of financing and a reasonable market share, to standardize and guide the self-determinative nongovernmental financing, to absorb nongovernmental capital into internal financial system with gradually deepening financing reform. In this article, the first part put forward the nongovernmental financing dilemma in small and medium-sized enterprises through introduction of the case of DaWu group. For the too high threshold in financing system, the excessive dependence on external financing system, the lack of government supportive policies, the constraints of poor laws and regulations, SMES is easy either to fall into deepening development or to give up the plight of illegal financing. The second analyzes the reasons for nongovernmental financing dilemma in SMES due to the result of the obstacle of the financial system and the rule of law and the lake of government regulation. The conclusions that we can get to come over the problem are: on the one hand, a gradual incorporation of private capital to enter the formal financial system, on the other hand, in protecting and regulating the nongovernmental self-determinative financing of small and medium-sized enterprises as well as strengthening the financing activities of small and medium-sized non-governmental oversight and guidance. The third part put forward the juristic countermeasures, which involve in optimizing the financing structure, broadening the financing channels and improving the regulatory system, to exert the positive effects of nongovernmental financing for SMES as well as prevent financial risks induced by non-governmental financing.