The Study On External Financing Environment Of Smes In China

Since reform and opening, rapid development of Chinese small and medium enterprises (SMEs), become to an important new force for economic rapid development and social stability. However, Chinese SMEs are greatly unfairly treated in many ways, especially financing. Financing has become a bottleneck in development of SMEs in China. SMEs survive and develop without the external environment, and the condition of the financing environment will significantly influence on SMEs financing. Therefore, this paper will study the Chinese SMEs financing problems based on the perspective of the external financing environment.Firstly, this paper will define the SMEs financing and external financing environment, and review the financing theory and the domestic and foreign study on SMEs finance. Secondly, we will analyze the situation of SMEs financing and external financing environment, from external financing environment of five aspects, namely the macroeconomic environment, financial service environment, government support environment, laws and regulations environment, and social service environment. Thirdly, we will select five factors from the external financing environment to analyze regression and evidence the correlation between selecting factors and SMEs listed company's asset-liability ratio. Finally, according to the results of the analysis, we will put forward the feasible suggestion improving the SMEs external financing environment from five aspects: optimizing the macroeconomic environment and promoting economic development; developing the financial services environment and providing financial support; strengthening government support environment and playing the government functions; improving the laws and regulations environment and enhancing the legal protection; promoting the social service environment and improving the service consciousness.