Studies On Financing Of China's Private Medium And Small-Sized Enterprises

Since reform and opening-up, the private medium and small-sized enterprises of our country have got swift and violent development, and have already become one of the most competitive economic forces now in our country. Quickening the development of private medium and small-sized enterprises has already become the common understanding of the whole society. However, the financial predicament has been the primary problem for the private medium and small –sized enterprises during the course of their development. This paper aims at providing some suggestions about this problem. The article adopts the methods combined with quantitative analysis, qualitative description and model, sets up an analysis frame of financing issue of private medium and small-sized enterprises. Other more, the article carries on the theory to analyze the financing predicaments of the private medium and small-sized enterprises of our country, and is combined actual conditions to analyze some questions existing in the financing course. The article points out that in our country, bank and enterprise's information asymmetry, the high transaction cost and the imperfect credit assurance system are main obstacles in the financing course of medium and small-sized enterprises. And these factors arise from private medium and small-enterprises, financial institution, government, credit assurance system and so on. Thus, the measures mentioned above should be taken to alleviate the financing predicament of the private medium and small-sized enterprises of our country, especially taking measures to lighten the degree of the information asymmetry between the bank and the enterprises. Through analyzing, the article finds that developing the private medium and small-sized bank can reach this point. The article also analyzes the feasibility of setting up and developing the private medium and small-sized bank. At last, this paper concludes that setting up and developing private medium and small-sized banks, improving the quality of private medium and small-sized Enterprises, changing government's functions, doing more efforts to supporting private medium and small-sized enterprises, and improving credit assurance system can resolve the financial predicament of private medium and small-sized enterprises.