Research On Financing Problems For Medium And Small Sized Enterprises From Perspective Of Owners And Investors' Behaviors

Experience from China's reform and opening up has shown that China's medium and small sized enterprises are an important force in the national economy. As the socialist market economic system gradually established, SMEs play an irreplaceable Strategic role in expanding employment, activating market, increasing income, social stability and building a rational economic structure, promoting China's economic development and innovation. With an increasingly important role of SMEs in the development of the national economy, SME's financing difficulties have been the main reason to hinder its Sustained and healthy development and they have not been effectively resolved yet. their financing situations have become a social concern for all walks of life.This paper puts forward that the interests of the owners and investors is the key factor for financing of SMEs based on analysis of the characteristics of China's SMEs and it should also become a concern of SMEs' financing research, Meanwhile drawing a conclusion that the financing needs of SMEs depends on their owners, and whether the investors are willing to invest in one SME also depends on their evaluation of owners. On this basis, it introduces owners' initial wealth, operating capability and risk aversion to build a model of residual income, the right to control the remaining, external financing needs of SMEs and the supply of external funding, and interprets the causes of SME financing difficulties from this perspective. Then it proposes a suggestion to meet the financing needs of SMEs based on analysis of financing needs and capital supply situation of SMEs at different stages of growth, offering ideas to solve the problems of financing for SMEs at different stages of growth, particularly at difficult stages in the financing, to promote the growth of SMEs and Maintain a healthy and orderly development.