The Research On Financing Problems For Small & Medium-sized Enterprises In China

Nowadays, small and medium enterprises (SMEs) play a more and more important role in the promoting of our economy growth, but it is very difficult for them to get financing from banks. To deal with the financial crisis, our government offered beneficial strategies and measures, but financing difficulty of SMEs becomes more and more obvious. This paper aims at solving the problem. With comparison and demonstration analysis, firstly, this paper demonstrates the importance of SMEs in our country; secondly, comparing the experience of SMEs financing from developed countries, it describes the present situation of financing difficulty of SMEs in our country and conducts a research on causes; lastly, it gives some suggestion on how to solve the difficulty. To begin with, use the model of the mechanism design theory to solve the condition of information asymmetry between banks and SMEs; then reform the financial system to support the financing of SMEs; finally, promote the financing mode of SMEs to strengthen their financing ability. All these measures have important significance to solve the financing difficulty of SMEs.