An Empirical Analysis About The Issues Of Innovative SMEs' Financing In Different Growing Phases-based On The Innovative SMEs In City Of Changsha

As the Principle role of creation and innovation, the innovative small and medium sized enterprises play an important role in the nationwide economics. However, restrained by their nature-born disadvantages, especially their relative small scale, these enterprises have various difficulties in attaining certain resource in their developing procedure. And financing problem is the most critical factor handicapping their healthy growth. As a result, analyzing and exploring how to fix the barricade up and create a more suitable economic environment to provide these enterprises more financing support becomes energetic and endurable. I will exhibit and compare the infrastructure and feature of both domestic and overseas SMEs. As my thesis goes on, I will discuss about financing difficulties, and the main influential factors will be presented. Based on these topics, using the 126 SMEs in Changsha as samples, the status quo of the innovative SMEs to obtain the loans from the banks and risk investment from venture capital institutions is analyzed by the statistical describing analysis. Afterthat, an empirical researched is done about the innovative SMEs' feature of financing structure and financing mode in different growing phases particularly, and the results imply that the Chinese innonvative SMEs' financing structure in defferent life cycle phases did not meet the traditional financing growth cycle theory. Innovative SMEs' asset liability ratios are decline in its birth stage and growth stage, but increase in the stages of maturity and decline. The main financing mode in birth stage is the owners' investment, borrowing from friends and relatives, angel investement and government investment (investment funds), etc; the main financing model in growth stage is corporate retained earnings reinvestment, owners' investment, risk investment and loans from the non-financial institutions, etc; the main financing model in maturity is corporate retained earings reinvestment, real estate mortgage bank loans, credit guarantee for loans, inventory mortgage bank loans and so on. The importance of the various means of financing models in different stages is significant difference. By compared with the investigation of the normal SMEs' financial features sporsored by CSU SMEs research centers, the difference is summed between innovative SMEs and normal SMEs on the topic of financing. i.e. innovative SMEs in preferred to equity financing in the early stage, and risk investment plays an more important role in the promotion of the innovative SMEs' development and growth in their early stages, compared to normal SMEs. This paper presented a series of corresponding policies for the innovative SMEs' financing difficulties based on the the empirical results in the end.