A Study On SME's Financing Difficulties And Institutional Innovation

Small-and-medium-sized enterprises (SMEs) play an important role in the development of national economy and society, so more and more people pay their much attention to them. However, it is difficult for SMEs to develop smoothly because of the "bottleneck" of capital which is the most outstanding problem. The issue of financing of SMEs is both a worldwide difficulty and a long-term question for discussion. In the especial period of the transformation and re-structuring of China's economic system, financing difficulties become much more outstanding and complicated.Based on existing research results, this paper learns from the theories of institutional economics and information economics, puts up a deeper analysis in order to give a theoretic support to the solution of financing difficulties. On the view of this paper, we not only need to discuss the credit ration caused by unsymmetrical information in the general meaning, but also need to analyze the financial system arrangement, the public service condition and financial cultural in China. From the angle of the financing transaction costs, taking the financial system research as main line, this paper aims at making progress in the analysis and solution of the SMEs financing dilemma.Besides the introduction, the main part of the dissertation is composed of 5 chapters .Main contents of the introduction part include three aspects: the important meaning of this thesis, the relevant literatures and the textual analysis angle.Chapter 1 carries on the international comparison of the SMEs financing system. The author defines financing system first, then pays attention to the financing structure, the financing method and the governmental policies which support the SMEs financing in developed countries.Chapter 2 presents the financing predicament of SMEs in China. Based on analyzing respectively current financing structure and financing characteristics of SMEs of our country, the thesis generalizes further with analysis the concrete performance of the SMEs financing difficulties.Chapter 3 gives a theoretic analysis on the SMEs financing difficulties from the view of transaction costs. The common factors which influence the SMEs financing are: unsymmetrical information, SMEs' poor credit level and bad situation, financing system arrangement, and system environment especially supporting system of government policy. It is just because high transaction costs that SMEs sink into financing predicament.Chapter 4 goes deep into the special reason of the SMEs financing difficulties in our country—system obstacles. From three aspects, this chapter analyzes system obstacles that influence the SMEs financing in the period of the economy transformation. Firstly, compulsory financing institutional change in our country brings disadvantageous influence to SMEs.; Secondly, imperfect formal and informal financial institution result in discrimination and restriction to SMEs; The third, imperfect financial institution environment lead to SMEs financing difficulties.