A Study On The Finance Structure Of Small And Medium-sized Enterprises Of Our Country

Hard financing of small and medium-sized enterprises is the world difficult problem that puzzles the economic circle, business circle and correlated departments of government in every country. In our country, this problem is more distinct because of special historical background. Since small and medium-sized enterprises play an important role in economy, it is an urgent task to study small and medium-sized enterprises, financing problems, help widen their financing channels, and tackle their financing difficulties. Solving financing difficulties in small and medium-sized enterprises will not only accelerate small and medium-sized enterprises, development but also promote the whole national economy.Finance structure is the result of financing behaviors of enterprises. The different financing behaviors come to the different finance structure. Whether financing behaviors of enterprises is reasonable or not is reflected through the finance structure. To optimize finance structure of business enterprises is to make the financing behaviors of business enterprises reasonable. It is an attempt that we apply mature theory of finance structure to the financing practice of small and medium-sized enterprises in our country from the angle of the finance structure. Study on the finance structure of small and medium sized enterprise is mainly to investigate self-moving order of the finance structure and financing mode of small and medium-sized enterprises and find out their law of the change of the finance structure with the growing of the small and medium sized enterprises. Set up diversified financial system for small and medium sized enterprises in our country and satisfy their financing demand when they are growing. Alleviate the financing difficulties in small and medium-sized enterprises and accelerate development of the small and medium-sized enterprise.At first, on the fundamental of the financing growing cycle theory, the thesis demonstrates that the financing behaviors of small and medium-sized enterprises of our country are tallied with the finance growing cycle theory. With the growing of small and medium-sized enterprises, their finance structures are different and the finance modes are evolved when they are growing. The SMEs choose different finance combination in different period. But cycle of financial growth of small and medium-sized enterprises of our country has its special characteristics because of economic structure, financial system and the financial environment under our country,s special conditions of transition from planned economy to market economy. Because of Lack of the diversified capital markets in our country and low accumulation rate of small and medium-sized enterprises of our country and single optional financing way, the small and medium-sized enterprises of our country chiefly depends on debt financing from financial institutions during the course of growing up. Ownership discrimination and scale discrimination make small and medium-sized enterprises of our country, specially, private small and medium-sized enterprises, very difficult obtaining loan from financial institutions. Hard financing of small and medium-sized enterprises of our country is more conspicuous.Secondly, the paper demonstrates present financing position of small and medium-sized enterprises in our country and analyses the reason of unreasonable finance structure and financing difficulties of small and medium-sized enterprises in our country. At present, the position of unreasonable financing structure is closely connected with financing difficulties. Hard financing of small and medium-sized enterprises of our country comes form finance suppressing, leading to"financial gaps". in addition, because the financing channel is narrow and the financing structure is single , small and medium-sized enterprises of our country faces"one pair of shortfalls"problem. That is debt financing gaps and equity financing gaps. the main reasons of hard financing of small and medium-sized enterprises of our country are insufficient credit, low ability of internal financing,"cherish loan"of state-run financial institutions, lack of system of small and medium-sized financial institutions and incomplete attention of government to them, ect.. Through study on match mode of banks against enterprises with asymmetrical information , the paper think large banks have more advantage of lending money to big enterprises because of collecting easily hard information than small and medium-sized enterprises. And small banks have more advantage of lending money to small and medium-sized enterprises with producing soft information easily. but under the premise that the interest rate is market-based, large bank can lend money to small and medium-sized enterprises too. Because they can compensate the risk against being unfavorable to collecting soft information by raising the interest rate, or low risk by implementing diversified investment combination , etc.At last, the thesis suggests that the process of improving finance structure is the process of removing financing difficulties. With the joint effort of small and medium-sized enterprises, government, financial institutions and the society, the basic outlet to solve financial problems of our small and medium-sized enterprises lies in creating multi-levels and multi-aspects fair liberal financial system for small and medium-sized enterprises in our country. To satisfy their financing demand in different period and accelerate development of small and medium-sized enterprises of our country , Specially , the key is to create a climate fit for the development of an endogenous financial system. Only under such a system the internal financing mechanism of private small and medium-sized enterprises will be formed.