The Research Of Debt Finance For Small-Medium Enterprises Of China

After the innovation and opening to the world, the small-medium enterprises have experienced a fast-speed development and have had an important role at the processing of economic development. The contribution for the GDP, the tax and the amount of export from the operation of small-medium enterprises is 60 percent, 40 percent and 60 percent respectively. They also made contribution to improving the employment rate, enhancing the earning of people and improving the development of regional economy. In recent years, a lot of policies have been enacted to support the development of small-medium enterprises, but the debt financing problem has always been one of the most important and difficult ones. And. now, it is an important issue not only for small-medium enterprises, but also for the researchers of economy.This paper has analyzed the factors that influenced the debt financing for small-medium enterprises and the situation small-medium enterprises faced now. The paper has also given the advice for the small-medium enterprises how to overcome the debt financing problems in order to seek development in the future.The paper has five chapters, first chapter is the introduction for the paper and the summary of the research of debt financing for small-medium enterprises has achieved in the past. Chapter two is giving the definition of small-medium enterprises and the important role of they have in the economy. Chapter three theoretically analyzes the factors that influence the debt financing for the small-medium enterprises and how to eliminate the difficulties they encounter. Chapter four introduces the difficulties small-medium enterprises encounter in debt financing, and analyzes why it is so difficult for them. Chapter five is the emphasis of the paper, based on the analysis above; it gives the suggestion for small-medium enterprises to get debt financing more easily and timely according to the need of production.