A Study On The Financing Of The SMEs In The Vision Of Industrial Cluster

The development of SMEs has an important role for country or regional economic development and social stability, especially in the context of globalization today. The accumulation of capital cann't be lack for enterprises' growth, however the companys' financing have been restricted duing to a variety of reasons, particularly for SMEs, causing laege loss in the economic efficiency. These reasons come from enterprises thenself as well as from the financial system and government policy for SMEs. Meanwhile, Fllowing with the background integrating in the global market , industrial clusters could improve the competitiveness of the enterprises locating there, and shows the enormous superiority in promoting the regional economic growth. Industrial clusters being as an effective means of the localization against the globalization has becoming more and more evident. Because industrial clusters could help regional enterprises promote communication and exchanges each other, reduce the information asymmetry, and improving the rate of return of capital, regional enterprises could establish better relation with the financial institution and local governments, which can greatly reduce the restrictions on the financing. This paper study on the financing of SMEs under the visual angle of industry cluster. Analyzing the competitive advantages of industrial clusters and its impact on the financing of enterprises, accompanied with the simple empirical analysis, we concluded that industrial clusters can facilitate the financing of SMEs, and promote their growth.Introduction of the paper review the literatures concerns on the issue of financing for SMEs. We describe the structure of the article briefly. In the second part of the paper we mainly analyzed the strategic significance of SMEs in the economic development. we also analyzed the adverse factors which caused financing difficulties for SMEs from the economics explanation. In the third part, on the basis of former scholars' researches on the industry cluster ,we analyzed and distinguish the concept and main features of the industrial clusters from the superiorities in the micro level and regional dimensions. Combinating with the relevant analysis in the second part,we tried to explain how these competitive advantages alleviate the financing difficulties for the SMEs.We believe that the competitive advantage of industrial clusters embodied in a micro-level to help enterprises to improve their competitiveness and to increase the rate of return on investment, which could not only enhance their own capital accumulation , but also withstand the higher interest rate of loan capital. Industrial clusters can help to reduce the occurrence of asymmetric information and lower credit rationing for SEMs. At the same time, SMEs maybe obtain the capital through group lending which is absolute impossibility to a single enterprise. The various risks of enterprises can be reduced when they locate in the cluster, lowering investors' risk premium as well as reducing the financing costs . In the intermediate-level, industrial cluster could promote the regional economic development in the region and enhance the resistibility against systemic risk,such as the economic cycle, the economic policy that have the adverse impact to the regional economic development. All these could improve the competitiveness of the clustering region, help abstract the financial institutions set up and gather the financial resources in the cluster, and encourage the banks or inverstors lend or invest the enterprises of the cluster region. In the forth part ,after measuring the industrial cluster and quantizing the corporate finance in the areas ,we took a simple empirical analysis on the relationship between the industry cluster and corporate finance in the areas(27 provinces in China) ,and concluded that they existed correlation each other. The final part of the paper is the conclusions that is ours policy proposals that is very simple. It is obvious that we need to further study on the paper's issue ,so we review the shortage even the mistake in the articles at the end of the paper.