The Financing Comparison Of Small And Medium-Sized Enterprises In Jiangxi Province And Zhejiang Province

The economy has experienced great growth in both Jiangxi province and Zhejiang province, after reforming and opening-up policy taken in China. Meanwhile, the economic gap between these two provinces has been enlarging since early 1990s, when the Small and Medium-Sized Enterprises (SMEs) in Zhejiang province started to rise quickly while SMEs in Jiangxi province still kept growing slowly. SMEs are playing more and more important role in national economy and have closer relations with regional economy. It can be drawn that it is the gap in SMEs that results in the economic gap between Zhejiang and Jiangxi province.First, the thesis makes a comprehensive comparison to SMEs present situations in Zhejiang province and Jiangxi province, and draws a conclusion that Jiangxi SMEs lag behind Zhejiang SMEs in many aspects ,such as quantity, scale ,profits and developing methods, etc. Nowadays, as a whole, Zhejiang SMEs ranks No.1 in China. Capital is indispensable to an enterprise, and financing difficulty has been puzzling SMEs for a long time. Financing difficulty is the bottleneck that restricts the development of SMEs in Jiangxi province. However, Zhejiang solves the financing difficulty relatively by installing an efficient SMEs financing system.Second, the thesis coordinates the financing theories, including Pecking order theory, Advantages of information theory, the theory of growth period of SMEs financing. It makes a concrete comparison to financing methods including internal financing, debt financing, equity financing and underground financing, to regional small and medium-sized financial institutions including City Commercial Bank, Rural Credit Union and Financial Guaranty Institution, in Jiangxi and Zhejiang province. After comparison, it finds that both Jiangxi SMEs and Zhejiang SMEs take internal financing as first financing method, and then take external financing, and Zhejiang SMEs financing is better than Jiangxi SMEs in many aspects ,such as financing methods , financing scale and supports from regional small and medium-sized financial institutions.Third, the thesis analyzes the financing environments for SMEs, including regional government and regional policy, regional financial ecology, regional culture and enterprises itself, in Zhejiang and Jiangxi province. As a result ,it draws a conclusion that there exist some shortages which block Jiangxi SMEs financing ,such as enterprises...