The Study On The Problem Of Financing Of SMEs In The Inner Mongolia

The problem about the small and medium-sized enterprises is the worldwide long-time topic. It have proved that a lot of SMEs is a common phenomenon in all stages of development and regions and the inherent requirement and inevitable result of economic development. Since reform and opening up, China's SMEs has been swift and violent and has played an irreplaceable role in expanding employment, activating market,increasing revenue, stabilizing Society,adjusting product structure and so on. On the current situation, the development of SMEs are still facing many problems such as smaller scale, difficulties in financing, the extensive growth mode, weak market competitiveness. However, the financing difficulties is the most important factor currently affecting the development of China's SMEs.Inner Mongolia being a less-developed area, the function and the status of the SMEs are more prominent. From now to 2010 is a crucial period that Inner Mongolia will speed up the realization of a well-off society,the process of new-type industrialization and maintain sustained, rapid, coordinated economic and social development.Since the "9th Five-Year",especially "15" period of rapid development, economic strength of Inner Mongolia has been further enhanced and growth rate has ranked the forefront of the country for several consecutive years,which have laid a good foundation for the future development. By contrast, economic development of Inner Mongolia' has not yet entered the forefront of the country and there has been a significant gaps compared with some areas.In the new round of development, economic development of Inner Mongolia' still shows economic patterns to catch up with. In this process,SMEs that have made important contributions for national economic and social development face with not only opportunities for development, but also many problems and difficulties. Therefore, promoting the development of SMEs have become an integral part of the economic development and the development of new-type industrialization construction of a system of Inner Mongolia. Only SMEs develop healthy and rapidly, coordinate with large enterprises and groups and complement each other,can Inner Mongolia's economy achieve leapfrog development. It Has become an urgent problem to study and explore the reasons for the difficulty in financing of SMEs in Inner Mongolia, to find problem-solving measures,to promote then healthy growth. Therefore, First of all, This paper gives the reasons for the choice, and introduces the successful experience of development of SMEs in some countries ,for example, Japan, Italy and Some parts of China , for example, Shanxi Province in which SMEs develope better. Second, This paper focuses on the development of SMEs in Inner Mongolia, including the number, geographical distribution, development speed and so on and; analyzes the role of SMEs in Inner Mongolia economy, including employment absorption , promotion the integration of urban and rural areas, acceleration of the development of agriculture and animal husbandry, increase of the tax revenue, activation of the market, Consumer satisfaction and the reasons for the development of difficulties Information backward,including difficulties in financing, inadequate social service system, a single industrial structure, the majority of small enterprises.Third, find the main reasons for SME financing difficulties in Inner Mongolia by analyzing the actual situation in Inner Mongolia and common reasons of SME financing difficulties including Ownership of discrimination, low credit, asymmetric information, lack of credit guarantee mechanism for financing, narrow financing channels, the total limit of bank and the permission to close.The main reasons are the relatively low proportion of loans in Inner Mongolia's financial institutions; reverse flow, sediment or stranded of large amounts of funds; inadequate investment credit;lack of financial innovation;more attention to efficiency, less attention to low-service; Small total deposits and loans; underdeveloped capital market; credit industry relatively backward; the improvement of credit market. Find suitable countermeasures to solve financing difficult in Inner Mongolia, by analyzing the universal countermeasures to solve difficulties in financing Including the development of Policy-oriented monetary, the establishment of Policy-oriented small and medium-sized financial institutions, the full development of small and medium-sized financial institutions,for instance, local small and medium banks; the development of Frivate Finance; the development of Joint-stock system and stock cooperative system ;the development of Second Board Market; attracting venture capital; broadening financing channels for external source, internationalization, diversification; establishing and improving the legal system for SMEs development; improving the internal Credit Management System in bank; devolution of power to approve loans for SMEs;enhancing the overall quality of SMEs.The countermeasures are to improve the credit guarantee system for SMEs, expand the financing channels actively, establish and improve the social service system, finance from abroad by use of Border advantage, Seize the opportunity to Western Development.