Research On The Financing Difficulties Of Qingdao SMEs

The research selects 36 Small & Medium Enterprises (SMEs) as a object,on the basic of questionnaires and key case investigation, proceeding from theconditions of capital demands and financing configuration, it gives a profoundanalysis on actual operating state and achievement on financing system of QingdaoSME, and also propounds proposals on relieving the financing difficulties of SMEwithin the present policies. Full report is divided into 4 parts.The first part: General analysis on financing difficulties of SME.For the SMEs, their small scale of assets, not transparent on accountinginformation, big uncertainty on dealing, less capability on standing economic impactfrom outside, brings them much difference on financing pattern with other bigenterprises, mainly manifested as: inner financing as main channel, debt financing asmain manner, short term capital as main financing term, financing form presentssystem appearance, capital demands are periodically and show characteristic ofindustry. There are two thoughts in academe of analysis on the financing difficultiesof minor enterprise, one is capital gap or equity capital gap, another is debt financinggap or debt capital financing gap, they expatiate profoundly on the intrinsic reason offinancing difficulties of minor enterprise.The second part: Analysis on the financing channel of SMEAt present, the financing channels of Qingdao SMEs are composed of 4 parts:Enterprises raise the funds themselves, the channels of commercial banks, theorganization provides guarantee and risk investment capital (government). By thequestionnaires and statistical analysis on these 36 SME, this part analyzes on theirconfiguration of capital demands in different stages, channels of getting externalcapital, the capability of getting external capital, effect of bank lending, effect ofagency service, their evaluation on the financing difficulties…etc and at last itevolves 8 conclusionsThe third part: Cause of formation on financing difficulties of QingdaoSME.It is not isolated on the problems of financing difficulties for the SMEs, it hasthe reasons of financial system and also infection of factor from themselves as wellas the policies of government. This part analyzes completely on the cause offormation of financing problems of SME in order to find the ways of settlingfinancing problems, from four sides on factor from enterprise itself, managingmechanism of bank system, infection from policies of government andagency-service organization.The fourth part: The policies and suggestion on relieving the financingdifficulties.This part concludes on present countermeasures on settling the financingdifficulties of SME, and brings forward pointed policies and suggestions by linkingthe condition of financing system of SME. Firstly the government should providepolicies support from several ways. Secondly the function of guaranteedorganization should be consummated and exerted, and the problems fromguaranteeing works should be settled. Thirdly the financial system should strengthenthe construction on the system of faithfulness and credit and reconstruct on productinnovation and credit operating flow, at the same time it should expedite onconstructing the minor finance system. Fourthly the managing levels of enterprisesthemselves and their payoff capability should be improved so that these enterprisescan be provided a long-term and stable capital support from the commercial &financial organization.