Finance Innovation And High-tech Small-scale And Mid-sized Enterprises

The twenty-first century is an age of knowledge-based economic activity. It is therefore important to rapidly develop a stable and sustainable economy in China using new knowledge and technologies. In modern economic development SMEs (small-scale and mid-sized enterprises) have been the source and important part of technological innovation. In China, High-tech SMEs are important agents in spreading and converting new technologies into economic achievements. They also offer a vehicle to enhance quality, modulate and optimize industrial structure, and guarantee expansion into new fields for economic growth.The growth and development of these High-tech SMEs requires sufficient capital. However, acquiring money has always been the"bottleneck"obstructing their development because of policies, complicated financial channels, and the distinctive features of the SMEs themselves.This paper suggests financial innovation theories to overcome these bottlenecks by analyzing the present situation of bank credit and High-tech SMEs. Based on the unique features of SMEs, financial innovation theories, and an analysis of the administration and business of commercial banks, the writer gives examples that illustrate that the innovations of commercial bank business is an effective way to promote the development of such enterprises.