A Study On Financial Support Of Small And Medium-Size Enterprises

The small and medium-size enterprises (SME) play an important role in activating market competition, improving market efficiency, creating employment opportunities and promoting technology innovations, but the problem of finance difficulty has restricted the development of SMEs. In this thesis, it is found that there are three factors, including the unbalance between the inner structure and function of financial system with the long run financial restrain, the maladjustment in the relation of government and market with the process of economic transit and the non-matching between structures of corporations ownership and financial organizations ownership, leading to the Chinese SMEs turning to informal financial organizations for reducing financial gap in the development process, because of absenting and faultiness of a mature SME financial support system. So, to build up a SME financial support system with formal financial organizations, through strengthening more duties of government, perfecting normative SME credit guarantee system, developing small and medium-size financial organizations, leading informal financial organizations to development healthily and developing direct finance system for SMEs, is an effective policy for the problem of SME financial difficulty.