Comparative Study On Financing Support To SMEs In ASEAN

From the experiences of economy development in worldwide, we could see small and medium-sized enterprises(SMEs) play an important role in countries'development. It is the most significant to promoting the development of national economy, providing jobs and maintaining stability of society. However, it is a common problem caused by the small scale of SMEs, the faulty of company governance and the defective of financial transaction that exists in SMEs, which is financial gap. How to eliminate the financial gap and to support SMEs financing is really a big problem that the country should consider.ASEAN coopted new members continuously when it set up in 1961, and it plays an important role in economic growth, social progress and cultural development. SMEs are the cornerstone of ASEAN countries, they take 30%-50% contribution in total of GDP, and take 19%-31% contribution in export. Not only are they most large part in all sectors, but also primary driving force in rural and mountainous districts. To be honest, the system of financing support to SMEs in ASEAN countries is not well enough, because most countries are developing countries as well as China is, but lessons is also necessary. Especially, China-ASEAN Free Trade Area(CAFTA) is launched on Jan 1st ,2010. Therefore, an enormous market which consists of 11 countries, 1.9 billion populations, 6 trillion dollars of GDP and 4.5 trillion dollars of total trade yearly is formed , it means they have reached a new level in economic relationship between China and ASEAN, it's a good chance that SMEs go abroad to exploit ASEAN market.The thesis begins with"market failure"as starting point, through the study on the relationship between"market failure"and SMEs financial gap, it indicate the key factors of fill in the gap, which is government supporting. Then, it discusses that the necessity and rationality of government supporting SMEs according to the theory of public goods. With the supporting of the theory, it states four parts of which are administration, law supporting, fiscal and taxation supporting and financing supporting, analyzing the experiences and draw lessons from ASEAN countries. At last, it provides four proposals on financing support to SMEs, which are making up the system of servicing to SMEs, optimizing the environment of the SMEs development, promoting the creation development of the SMEs, opening up the channels of SMEs financing, to seek for a suitable way to our own country.