Legal Obstacles And Countermeasures Of Financing Difficulties Of Small And Medium - Sized Enterprises

SME financing is the greatest difficulty which limits the small and medium-sized enterprises’ development. However, under the conditions of market economy, the behavior of the market players’freedom of choice that should not be survival of the fittest, survival of the fittest? SMEs’ factors, no establishment of a modern enterprise system, no standardized financial management, low social credit and their own poor profitability, cannot meet the requirements of the investors of the safety of funds, which should not be legitimate reasons affecting investors get away from them? Suppose, for example, capital investors investing in the capital security under the premise pursuit of capital maximize return on investment, so whether it is formal financial institutions or individual investors, of course, are willing to put its money into security and mobility where there are investment value rather than to small and medium-sized scale. When facing a huge business risk, these investors do not choose to invest in SMEs but to the choice of the large state-owned enterprises, isn’t it rational behavior in the market?Everything seems to be true. Admittedly, these factors do influence SME financing, but our common fact is that reasonable? Of common seen things, we are usually easy to form prejudices, and take for granted. It is easy to ignore the view of the nature of the problem and the premise. But what if the basic platform of the market environment is not fair and impartial? No fair system of justice providing the protection of the rule of law, the market economy will be not like that and the market is to be difficult to play a fundamental role in resource allocation. Therefore, this thesis uses a step-by-step to expand the financing problem of SMEs.The first chapter introduces the standard of classification and the main characteristics of China’s small and medium enterprises. Seemingly factual statements and summarized, in fact, it would be useful, because later chapters are to be related to financing of SMEs general legal obstacles and even legal measures, or more from the first chapter of the characteristics of SMEs. Because of the characteristics of SMEs, the outcome brought from these characteristic could be either in positive direction or in opposite direction. The second chapter of the analysis discusses without considering the premise of the legal system. The implied premise is that the main body of the market economy is in a fair legal system under the conditions of market behavior. The third chapter focuses on analysis of the obstacles faced by the SMEs in China in a variety of financing, some left over from history, because the economic system reform is not yet complete, some legal imperfections and lack of legal norms, it is encountered in the new economic conditions new problems.The fourth chapter learns from foreign advanced countries in dealing with SME financing legal experience in terms of legislation. The fifth chapter integrated combination of the first few chapters of analysis based on targeted legal measures.