Research On China's Medium And Small-sized Enterprises' Financial Problems

The effects of medium and small-sized enterprises on the economy of China cannot be substituted. However, the difficulties of processing financing that these sorts of enterprises confront badly hamper the development of these sorts of enterprises. In order to support the development of SMEs, the problems of financing have to be solved. So, it has great theoretical and practical sense.This paper targets SMEs as research objects, Based on the scientific definition of SMEs and the theory of enterprise financing, and according to the actual characteristics, this paper completely and systematically analyses the problems existing in the system of internal financing, indirect financing, direct financing and government supporting. Moreover, aiming at different levels, such as enterprises, banks and governments, this paper brings forward practical strategies and suggestions to solve the financing problems for SMEs. Moreover, this paper points we should learn about other countries' experiences and improve our SMEs international economic cooperation to absorb more overseas capital.There are four parts of this paper:The first chapter is a summary of SMEs in China. This chapter first gives the definition of SMEs by two facets, which are "quality" and "quantity". Then the important practical meaning to develop these sorts of enterprisesby analyzing the status and effects of them are pointed out. Finally, this chapter indicates that the difficulty of financing is the biggest obstacle for the SMEs' development by analyzing the current developing status and characteristics.The second chapter mainly reviews some literatures about enterprises financing, and some related concepts of SMEs financing. The method of SMEs is divided into three categories: internal financing and external financing, direct financing and indirect financing, dividend financing and credit financing. This method is used to instruct SMEs1 financing in China.The third chapter analyzes the present financing situation of SMEs in China. The analysis includes the whole structure of SMEs' financing. Further, it also analyzes the present status of internal financing, indirect financing and direct financing by using statistic data. Based on this, the existing financing problems of SMEs in China are concluded, and the reasons that cause these problems are discussed deeply.The fourth chapter indicates strategies to resolve the financing problems of SMEs in China. Concretely, the strategies are constituted of strategy for internal financing, strategy for indirect financing and strategy for direct financing. Secondly, it also indicates the government impact of instruction and supporting on the three approaches. Thirdly, it emphasizes the key point of solving these problems is to make and reinforce good and efficient cooperation between enterprises, financial institutions and governments. Lastly, it introduces the main overseas financing methods to help China's SMEs' financing.This paper intends to make innovation as the following two aspects. 1. It is different from previous method to solve financing problems of SMEs by emphasizing to reform external financing environment, this paper considers that it is the same important for SMEs to improve their quality by themselves, and to encourage them to enhance internal financing and to improve external financing environment. None of the three aspects can be ignored. 2.The previous studies are more likely to do research on enterprises, financial institutions and governments individually. This paper tends to combine the three institutions, in order to find a better way to solve financing problems of SMEs. 3. Try to find more overseas financing methods to improve SMEs to enhance international economic cooperation and absorb more overseas capital.