Research On The Financing Problems During The Development Of The Small And Medium-seized Enterprises(SMEs) In Our Country

Small and medium-sized enterprises play an important part in the economic development of all the countries in the world, whether they are developed or developing. SMEs are an important pillar of economic development and social stability. However, the growth of SMEs encounters numerous difficulties in various fields, such as, financial, human resources, management and so on, which are all obstacles to the development of SMEs. The lack of funds is the greatest problem that hinders the development of SMEs, which is an international issue prevalent in SMEs' development in the world. The developed countries have set up, through years of practice and exploration, the appropriate financial system, and their SMEs' financial problems have been effectively alleviated or solved. In china, the government has also taken a series of measures to alleviate SMEs' financing problem, but the problem has not been fundamentally solved. Therefore, it is both essential and crucial to further the research of SMEs' financing problems in China.This paper takes SMEs' financing problems as a research object, and defines the concept of SMEs. Based on the finance theory, combined with the actual characteristics of China's SMEs, the author gives a systematic analysis of the existing problems in SMEs' financing, and penetrates into the reasons of financing difficulties. The author also makes some financing proposals to solve the dilemma, internally through the improvement of enterprises' quality, externally by the improvement of multiple mechanisms of the government, banks and financial markets, which jointly promote SMEs' improvement of the financing environment.This paper includes four parts. In the first part, the author defines SMEs, and then elaborates the international and domestic demarcation of SMEs. The author points out the significance of developing SMEs in our country according to SMEs' general and special roles in national economy, indicating the importance and significance of developing SMEs in our country. In the second part, after an introduction to the basic theories of finance, the author briefly introduces the basic concepts of finance, financing channels for SMEs, and SMEs' demands for finance, analyzing the status and conditions of financing for SMEs, and also illustrates how the change of China's policies brings opportunities for SMEs' financing. Meanwhile, the author mainly explains the current situation, that is, Chinese SMEs' internal and external financing channels are not good. In the third part, the author points out the deep-rooted reasons of Chinese SMEs' financing problems from the internal and external aspects. The constraints from SMEs themselves and the influences from social and economic mechanisms, including the government, bank system, financial system and intermediary agencies, are intertwined together to have a bad effect on SMEs' development. In the fourth part, the author puts forwards a solution, suggesting that the plight should be solved only through SMEs themselves and their economic environment.This paper attempts to propose a new idea, that is, instead of solving SMEs' financing problems from one point or one aspect, we should emphasize the combination of internal and external mechanisms, making use of the market mechanism and the constant improvements in all aspects of the external environment. Only in this way the financing problems existing in our country' SMEs can be solved...