The Small And Medium Enterprises' Financing Solution At Linyi County

By using questionnaire interview with small and medium enterprises at LinYi county,Shandong province, I found some questions about financing of small and medium enterprises, for example, the financial channel is single, it's hard to get medium-term loans for fixed assets, over-dependence on secondary financing from financial institutions. These factors intensify business risk of small and medium enterprises. Therefore, using related theories reveal the root of the problems, to devise practical financial solution for those small and medium enterprises, To provide some reference to the participants of the county economy and theorists.The paper adopted case study and its academic standards, questionnaire method, comparative method, the theories in this paper involves:asymmetric information theory, risk and return trade-off theory, theory on economic development in county district, theory of enterprise life cycle, and so on. It introduces some countries' development experiences of supporting medium and small size enterprises, like America, Japan and Singapore. In our country, I chose Wenzhou private financing and Anhui huoshan small and medium enterprises financing experience as illustrations, From governments and financial institutions, enterprises, three parties to start, I set up a comprehensive solution for the county small and medium-sized enterprises.Solutions designed in government's angle:1 Established small and medium enterprises authority.2 worked out the medium-term development plans for small and medium enterprises.3 Financial subsidies to share the risk of bank lending.4 Be socialized service system. 5 Established for venture capital fund. 6 Encouraging external experts to improve their management level. 7 Play a role of bridge to improve the cooperation between bank and enterprise.. 8 Set up financing guarantee fund for small and medium enterprises. 9 Set up a small loan company. 10 Enhance the direct financing capacity. 11 Accelerate development of the financial ecology to A level.Solutions designed in enterprises' angle:1 Strengthen the internal audit to improve corporate governance structure. 2 Standardize financial management. 3 Enhance the transparency of the financial information. 4 Establish mutual insurance mechanisms among small and medium-sized enterprises. 5 Absorb administrators. Solutions designed in financial institutions' angle:1 Rich variety of credit. 2 Optimize the process. 3 Cultivate specialized product manager. 4 The establishment of a particular medium and small-sized enterprises evaluate system. 5 Further improve the evaluation of the branch.The new points of the research are the follow three aspects:1 According to the characteristics of the county government, financial institutions, enterprises, suggested integrated solutions, operational.2 New perspectives:Researches on small and medium-sized enterprises mostly as a whole. Few people study it base on the county economy. 3 not only know the methods of thought and action, but also intensively research bank's credit behavior.There are two aspects of disadvantage in this paper:1 discussion on related theory is weak on analysis. The author has work in a infrastructure of a commercial bank for a long time, enough working experience, but less speculative knowledge. Not too many documents to study. 2 the samples selected in the county have limitations.