The Research On Financial Support For The Development Of SMEs In PRD

Small and medium-sized enterprises (SMEs) in the area of Pearl River Delta (PRD) have been developing very quickly; they have already become an important force to support the growth of economy and to foster the harmonious development of society. This article starts with the discussion of the financial support for the development of SMEs in PRD from the perspective of SME's sustainable development. First, I fully illuminated how SMEs rose, developed and then enumerated the main features of their development. After that I respectively analyzed the characteristics of financing demands of both the labor-intensive and technical SMEs in PRD. Then I pointed out: as the whole industry being reformed and technology being upgraded, financial demands of SMEs will continue to increase; and it will become the focus of the financial support policy in PRD to enforce the financial support for technical SMEs.Second, on the basis of the previous analysis of the SMEs,I analyzed the financing support model of PRD. SMEs in PRD mainly depend on the outside financing sources, which is determined by the export-oriented characteristic of their development. attracting foreign capital becomes the major feature of financial support .under the direction of government's policy and with the support of its funding, financial institutions credit is the major way of credit, and folk loans and credit guarantee loans are important complements. However, the financial support for SMEs in PRD is still insufficient: SMEs'usage of foreign capital is facing challenges; SMEs'operating characteristics are against their own financing; loans to SMEs have high risk that is contradictory with the goal of sound operation of financial institutions; the relationship between SMEs and the credit guarantee institutions might is not very well. Last, my article also give some policy advices: the system of financial support for SMEs in PRD should be improved; the advantages of PRD should be further strengthened to attract foreign capital for the investment of SMEs; financing channels for SMEs in PRD should be expanded, the financial system and financial services should be improved and a perfect credit system of PRD should be established.