On Financial Problems Of Small And Medium-sized Enterprises' In China

Along with the lasting and stable growth of Chinese economics, the problems of Small and Medium-sized Enterprises'as the main strength that impetus economy's development has been concerned increasingly, and the financing problem of Small and Medium-sized Enterprises'disputed has been strongly researched by various countries' scholar. From the initial MM Theory, Pecking Order Theory and Asymmetry Information Theory until Financial Growth Cycle Theory and Relationship Finance Theory that refer to Small and Medium-sized Enterprises, how to find the financing way that suits Small and Medium-sized Enterprises'development, is the final problem to solve. But because of the particularity of Chinese structure and the imperfect of market economy environment, it is necessary to consider which analysis method is suitable for each financing way when we analyze the financial problem of Small and Medium-sized Enterprises by different kinds of theory.Now the main financial way suitable for Small and Medium-sized Enterprises in China is loan from commercial bank. In this paper we study the financial problem of Small and Medium-sized Enterprise on the angle of loan from commercial bank, pursuing the way to solve the problem between them.Specificlly, in this paper, we first review the traditional financial theory about enterprises in brief simply, after analyzing by Financial Growth Cycle Theory we obtain that the main way suitable for Small and Medium-sized Enterprises in China is loan from commercial bank; then we summarize the financial condition of Small and Medium-sized Enterprises and get the results that now there is capital gap exist in Small and Medium-sized Enterprises in China, it is difficult to finance from commercial bank. In the part of theoretical analysis, first we analyze each character of commercial bank and Small and Medium-sized Enterprises, then get the results that the cause of financing difficulty is asymmetry information, the message display model shows that if the Small and Medium-sized Enterprises can provide relative information initiatively, it would solve the conflict of commercial bank can't differentiate high quality enterprise. At last the game between commercial bank and Small and Medium-sized Enterprises also fully explains: under the long-term unlimited games, they will work together. So we introduce Relationship Finance Theory to solve the asymmetry information between commercial bank and Small and Medium-sized Enterprises. After comparing the practice of Relationship Finance Theory in each country, and analyzing the character of financial market in China, we educe that Small and Medium-sized bank and community bank are the specific way to carry out Relationship Finance Theory successfully. In the end, we advance the policy advice: we should develop and perfect Small and Medium-sized bank and community bank energetically on existing foundation, restructure the civilian capital positively, and reform the four great state-owned commercial bank organization. In addition, we still discuss how to perfect the self-limitation of Small and Medium-sized Enterprises and how to establish other nation's assistant establishment, in order to creat a well outside condition for Small and Medium-sized Enterprises finance efficiently.