The Research On Difficulty In Financing And Countermeasure In Small And Medium-sized Private Enterprises Of China

Funding is the first and sustained impetus for the development of enterprises. Any enterprise can not do without funds. Small and medium-sized private enterprises(SME) in order to sustain healthy development are also inseparable from the support of funds. In China, contribution from SME to the national economy is on the rise. A large number of small and medium-sized private enterprises are playing an increasingly important role in expanding employment and meeting the diverse needs of the residents. However, in our country, because the market mechanism is not mature,social credit environment is imperfect,financing of SME has lots of restrictions as well as financing channels are not smooth, which results in difficulties in financing of SME.Although the scholars at home and abroad have made research on financing difficulties for SME.However,the measures are confined to the external environment how to adapt to the enterprise instead of enterprise should change to adapt environment .The author believes SME should first enhance their quality,instead of from the external environment to find solution.My study way is from the internal reason,which is this paper's innovation comparing to other research.This paper from the view of SME to study the difficulties in financing is feasible as well as a innovation. This paper combines characteristics of SME,basing on new pecking order theory,from the view of enterprise,in order to analyse the factor impact of corporate financing.This paper is to make a direction for SME before financing.That is to say,in a fixed external environment SME how to improve their own quality to meet the environmental requirements.Only when SME make proper preparations before financing can the difficulties in financing be effectively solved. In addition, through the establishment of a game model we get the reason of why banks not giving credit to SME.And through the introduction of incentive mechanisms to that game model we find how to promote credit activities between SME and banks.Finally,this paper is from the internal perspective of enterprise to solve difficulties in financing.