A Study On Financing Mechanism For SMEs Of Wuhan City Circle

The 21st century is the era of economic globalization. Economic globalization can be fulfilled gradually by the development of regional economy. The city circle mainly composed of large cities plays an important role in the development of regional economy. It can be said that the 21st century is the century of a city circle. Since China began implementing the"Rise of Central China"strategy, there have been economists proposed the concept'only the center fixed'can'the world secure'. March 2010, the State Council officially approved the"Overall City Plan (2010-2020) of Wuhan", and further established that wuhan is the central city of central China. Wuhan is from"an important central city of central China"to"the central city of central China", which reflects China's regional policy guidance in the competition of"leader"of the Rise of central China. This will help wuhan make the best of"growth pole". By enhancing their financia"lblood"mechanism and the allocation function, and then by the"polarization diffusion"effect, we can promote the development of other cities in wuhan city circle. Of course, it can create a favorable policy environment and financial market environment for the small and medium enterprises(SMEs) in wuhan city circle.Currently, because of the good political and economic environment in wuhan city circle, the small enterprises become an important engine of economic growth in our province due to its rich resources, flexible and innovative mechanisms as well as adapting to the changing economic environment and meeting people at different levels of consumer demand. However, for a long time the SMEs in wuhan city circle are still vulnerable groups in the regional economy. It is difficult for them to compete in financial intermediation, market access, introduction of talents, information sharing and application of scientific and technological achievements. In particular, the"bottleneck"caused by the lack of internal and external funds , makes the development of SMEs faced with increasingly severe financial repression. The thesis is divided into four chapters. By the means of"raise the problem—analyse the problem—solve the problem", taking regional economy and the SMEs finance theory as related support, with some data, after comparing and analysing, the thesis reveals the problems of the SMEs in wuhan city circle, and put forward some countermeasures and suggestions.Firstly, this paper, the research is set in the important position of wuhan city circle in the national economic growth, the importance that SMEs develop to regional economic development and its financing constraints. The paper will introduce research trends scholars abroad and home have done on city circle and SMEs financing, and point out that the theories about financing of SMEs and the regional economy are relatively lack of at home and abroad .To study the scope of this special region in wuhan city circle, SMEs within its jurisdiction the financing mechanism, not only enrich the theory of regional economic SMEs and their financing, but also develop of wuhan city circle and SMEs , adjust of government functions as well as provide a meaningful reference for several other major cities .Secondly, the paper starting from the profile of wuhan city circle, under the guidance of the Gradient Theory, Industrial Cluster Theory and the theory of the SMEs financing, targeted to the financing channel and financing subject, analyses the financing situation of wuhan city circle. The analysis is mainly from government support, financial system, SMEs themselves, trying to provide a reference for the formulation of enterprise financing.Thirdly, based on the analysis of the current situation of the SMEs in wuhan city circle, the paper thinks the inner source financing is insufficient and the external source financing is blocked is the real situation. The reasons lead to the financing difficulty of the SMEs in wuhan city circle are as follows: the SMEs in their own deficiencies, management system of financial institutions and inadequate government support.Fourthly, based on the theoretical analysis and data proof, the paper proposes the diversity financing mechanism which helps to build and improve the SMEs in wuhan city circle. First, improve governance and internal control of the SMEs, which determines the key sources of corporate funds. Second, convert the functions of government services, which determines the advantages and disadvantages of SMEs financing environment. Third, optimize the financing methods and channels of the SMEs through financial market innovation. Finally, promote the development of the SMEs through industrial restructuring and regional economic development.In short, the financing of SMEs in wuhan city circle, which is related to the economic development of wuhan city region and the national implementation of regional policy, is a long-term issue of concern. Therefore, every effort should be gathered all over the society to solve this issue.