SME' Financial Dilemma Based On Transaction Cost

In China, Financing of SMEs and its essence is a kind of market trading activities. Traditional economics, since the moment of complete information of the transaction, the transaction have no cost. However, the actual prevalence of economic activities, information asymmetry, the operation of market mechanisms and transactions has the cost. Coase proposed in 1937 the concept of transaction costs, the creation of the transaction cost theory, then a large number of economists such as Williamson, Demsetz, Hart and other developed this theory. This article from the perspective of transaction cost analysis of the financing problem of SMEs. The following will be divided into five parts to elaborate.The first part is the introduction, including background and significance of the problem, research ideas and methods of three parts. The second part is the literature review, despite the domestic financing of SMEs in solving a lot of research, but still it is necessary to summarize the existing literature finishing, the other as we selected factors using transaction cost analysis, so the second part of The second summary focused on the concept of transaction costs and transaction costs in the financing of the use of a brief literature review. In the third section describes the system in the process of SME financing barriers, the first analysis of the current situation of SME financing, and review of China's reform and opening up the development process of SME financing system, and finally describes the current development of SME financing trend. The fourth part of this article, according to the process of SME financing transactions, I believe that transaction costs are the main reasons hindering small and medium enterprises financing and transaction costs for both supply and demand problem exists. For the demand side, its transaction costs are mainly the uncertainty after the commencement of the credit contract, the cost of the contract cost of SME financing, mainly in small and medium enterprises and commercial banks during the negotiations between; for the supply side, there exists transaction costs are mainly commercial banks, the cost of information search and supervision costs. In the fifth part, the conclusions of the fourth part will propose solutions to SME financing proposal.