A Study On Small And Medium-sized Enterprises Financing System Of The U.S

The main body of the microcosmic economy contains not only the large enterprises which play the main roles in the development of U.S, but also the small and medium-sized enterprises which are much more vigorous. The ratio of their production in the GDP has risen gradually. Meanwhile, small and medium-sized enterprises produce as marked effect on increasing employment and improving the structure of employment. However, due to asymmetric information and limited by their own characteristics, one of the largest difficulties of developing small and medium-sized enterprises is lacking of capital, therefore, how to solve this main difficulty is the center issue. In the nearly half century, U.S has set a consummate financing system for small and medium-sized enterprises. Meanwhile, government conducted the vigorous support high-speed development of small and medium-sized enterprises. The U.S. has shown a good example of solving small and medium-sized enterprises financing difficulty. This article analysis U.S small business financing system and combine together with the different choices made by enterprises on the different stage and we could make fully understand of this system then give some feasibility suggestion which was aim at the directly at the difficulties with which our small and medium-sized small enterprises confront.Business financing theories which are the foundation of the action contains MM theory,Asymmetric Information theory and Financial Life Cycle of The Firm theory. MM theory has never given up the purpose of achieving the excellent financing structure. Therefore, it can't explain the financing action of small and medium-sized enterprises; Asymmetric Information theory is a much more feasibility theory than MM theory but it did not consider the scale and credit condition of enterprises, so it still could not explain the regularity development of enterprises, however, Financial Life Cycle of The Firm theory has made up those flaws, it explain the regularity of the changes of enterprises structure and it was the main theory of financing for small and medium-sized enterprises . After set forth these theories author analyses the important effect of small and medium-sized enterprises on the U.S economy so that we know the significance of setting up a mature financing system to support mall and medium-sized enterprises.In the second part of this article, the author introduces the U.S financing system of small and medium-sized enterprises. It is known that besides strongly support of the U.S government the other important reason for enterprises developed in such a quick speed and in such a good condition is that they have a mature financing system. Small and medium-sized enterprises can raise money from many approaches, first, finance through banks and loan from commercial banks is the main source of external capital. In the U.S the relationship between banks and enterprises was called"keep arm's length finance", and the character is that the relationship of the bank and enterprises rather loose. There are large amount of commercial banks of different size in the U.S who support small and medium-size enterprises well; second, credit guarantee loans. Under the circumstance of asymmetric information, construct and perfect credit system is the important method to solve small and medium-sized enterprises financial problem. This kind of loans function as bridges which link bank to enterprises well and they also modify the condition of asymmetric information so that price mechanism can dominants market automatically. The U.S. government has given financial support to small and medium-sized enterprises through constructing small and medium-sized enterprises credit guarantee system, with SBA implementing small and medium-sized enterprises loan guarantee plans; third, finance form financial companies. To great extend this kind of capital has solved the financing dilemma of high-tech enterprises, push the rapid development of American high-tech industries and made the economy climb to a new peak. Fourth, finance on stock markets. Stock markets are very efficiency and more important is that they help enterprises to dissipate risks, so as far as the small and medium-sized enterprises are concerned, finance in this way can enterprises not only solve the financing dilemma but also give a best place for venture capital existing market.In the third part, author analyzes the requirements made by mall and medium-sized enterprises which are in different professions and on different stages. According to financial growth cycle theory, enterprises can be divided into different stage on which they have different requirements during their process of financing. From the analysis above, we could know that the U.S financing system could meet the demand of small and medium-sized enterprises finance that's the most important reason why the U.S enterprises has developed in such a rapid speed.In the last part, author summarizes the successful experiences from U.S financing system and inspiration to Chinese small and medium-sized enterprises finance. Some suggestions were made in this part: first, speed up the financial system reform and set up medium-sized enterprises financial organization. Second, establish policy financial loan system; last but not least, develop venture capital, meanwhile, establish and perfect capital market which aim directly at small and medium-sized enterprises.To sum up, we should solved the small and medium-sized enterprises'financial difficulties as soon as possible. The U.S. has set a good example for every country not except China. Using American experiences as reference, push our small and medium-sized enterprises develop healthily and fast.