The Countermeasures Of Sme Financing Difficulties And The Government Responsibilities

Since reform and opening-up, SMEs contribution continuously improves, especially in promoting the national economy development, lowering employment pressures,accelerating technology innovation,promoting the health development of socialist market economy. However, because of SMEs own factors and the impact of the external environment, SMEs financing problem increasingly becomes a bottleneck impeding their development. Therefore, the government should take all kinds of support policies to promote the issue settlement of SMEs financing and promote SMEs development . This paper expounds the theory of public good and market failure theory is the theoretical foundation of government supporting SME financing; introduces the main practices how the devoloped countries/regions and Emerging Market Countries/regions support SME financing, summarizes their successful experience and the Enlightenment to China; analyses the status of SMEs financing in Suzhou, the policies of assisting SME financing having been set up by the local government, particularly the assessment of the finance consulting system that was initiated by Suzhou. Finally this paper raises its policy recommendations that our government should Establish and perfect the laws and regulations on SMEs; speed up the development of a social credibility system; improve SME credit guarantee system; Widen Financing Channel of SMEs.