Research On Financing Of The Small And Medium-sized Enterprises Of Foshan City Based On The Government Investment

It is not only a topic highly frequently occurring in recent years but also a major project related to the healthy development of the socialist market economy that it is difficult for the small and medium-sized enterprises to raise money.For more than 30 years since the reform and opening,the small and medium-sized enterprises of Foshan City have accounted for over 90%of the total industries of Foshan City,which indicates that the small and medium-sized enterprises occupy the very important status in the economic development, social stability,resolution of employment problems and meeting the social demands of Foshan City.However,since the last half of last year,due to the influence of the international economic and financial crisis,the enterprises of Foshan City have suffered from the unprecedented difficulties and challenges,it has been very difficult for some enterprises to carry out production and operation and even some enterprises have been closed,stopped production, stopped half of the production or the employees have been on leave in turn.It can be seen that the financing problem of the small and medium-sized enterprises has become the bottleneck of development of the small and medium-sized enterprises of Foshan City.Faced with the intensive international competition and the rapid development of the Yangtze River Delta as well as the challenge that the cities around are competing for development,it is urgent to strengthen the support of the small and medium-sized enterprises and improve the policy of supporting the development of the small and medium-sized enterprises.The emphasis will go to resolve the problem of difficulty in financing of the small and medium-sized enterprises from the perspective of the governmental investment in the paper.The enterprise financing refers to the moving process of taking the enterprise as the main financing funds and making the fund supply of the enterprise and between all the links in the enterprise from the imbalanced state to the balanced state.When there is lack of funds,the funds with the appropriate amount in the appropriate period will be raised with the least price. When there is surplus of funds,the funds will be issued with the lowest risk and at the appropriate period to achieve the maximum income so as to achieve the balance between the supply and demand of funds.The financing sources mainly include bank credit funds outside the enterprise,funds of the non-banking institutions,funds of other institutions,social personal funds,foreign funds and funds raised in the enterprise.The financing behavior of the enterprises of our country happens under the background where the capital market is not perfect.Although the exact proportions of the internal funds and the external funds of the enterprise cannot be determined according to the current statistics,it is a fact that cannot be denied that the enterprises of our country,and especially the State-owned medium-sized and large enterprises depend on the bank loans to provide a large amount of funds for operation at present.The proportion of the internal financing in the financing structure of the enterprises of our country is less than those of the developed countries.The research shows that the proportion of the internal financing of our country is less than 25%,far less than those of the developed countries.In addition,the companies listed in the market of our country are highly interested in the stock-right financing.In the external financing,the proportion of the stock-right financing is more than that of the bond financing.The governmental investment can just make up the failure,coordinate the proportional relations of the major investments in the whole society and promote the economic development and structural optimization.Viewed from the function of the governmental investment,the governmental investment is the necessary approach of the national macro-economic adjustment and control and it plays the important macro-guiding role in the social investment and allocation of resources.The governmental investment refers to the investment by the government as the subject.In a long period in our country,the governmental investment has been the main part of all the investment.With the gradual reform of the planned commodity economy and the continuous deepening of the reform and opening policy,major changes have occurred to the investment field and the investment subjects have been developed from the single government to many subjects such as the government,enterprises,individuals and foreign businessmen,etc. since the 3^rd Session of the 11^th National People' s Congress of the Communist Party of China.Viewed from the components of the investment,the governmental investment generally includes the two parts,that is,financial investment and policy-related investment.Viewed from the usage of funds,the governmental expenditure used for the fixed-assets construction is separated from the governmental investment.The governmental investment is generally used for the public welfare projects,public products and infrastructure,etc.,but viewed from the market economic concepts and investment for making profits, most of the fixed-assets construction projects that have been called the governmental investment shall be called the government expenditure.The governmental investment involves some fields such as natural monopolized projects,projects with the obvious effects and project of strategic importance as well as investment of the small and medium-sized enterprises in the equipment,etc.The investment of the small and medium-sized enterprises mainly include small amount of funds for the technological innovation of the national and local small and medium-sized enterprises,funds for development of the international market of the small and medium-sized enterprises and discount interest funds for the technological reform,etc.The history for the central government and the local governments of our country to provide the support of funds for the small and medium-sized enterprises is short.All these governmental funds are a small amount for the small and medium-sized enterprises urgently needing funds in the aspects of broadness---quantity of benefited enterprises or depth---total amount of funds, etc.However,such governmental policy guiding and support is very beneficial for resolving the financing problems of the small and medium-sized enterprises of our country.Therefore,the macro-adjusting role of the government shall be further given play and the governmental investment shall be used to optimize the financing structure of the small and medium-sized enterprises and reduce the financing cost of the small and medium-sized enterprises.At present,the financing mechanism suitable to the market economic system is not perfect in the financing environment of Guangdong Province,the indirect financing environment of the small and medium-sized enterprises is not perfect,the direct financing environment is poor and the use of the international financing by the small and medium-sized enterprises of Guangdong faces many difficulties,etc. Influenced by the regional financing environment and the financial crisis as well as some other reasons such as low financing capability and poor competitive power in the financial system and financial institutions as well as in the enterprises for the financing of the small and medium-sized enterprises of Foshan City,it has become more and more difficult for financing of the small and medium-sized enterprises of Foshan City and the survival of the small and medium-sized enterprises faces the serious problems.Therefore,according to the difficulties generally facing the small and medium-sized enterprises of Foshan City,in combination with the actual situation of financing of the small and medium-sized enterprises of Foshan City and in accordance with the governmental investment theory and the enterprise financing theory,the opportunity for expanding the internal demand,promoting the economic growth and strengthening the support for development of the small and medium-sized enterprises promulgated by the central government and Guangdong Province will be closely seized to study,explore and build the small and medium-sized enterprises financing service platform dominated by the governmental investment of Foshan City,perfect the management and service system,break through the financing bottleneck of the small and medium-sized enterprises and really resolve the difficulties in financing of the small and medium-sized enterprises of Foshan City.What shall not be neglected is that the credit guaranty system is of great significance for the financing of the small and medium-sized enterprises in the process of building the small and medium-sized enterprise financing platform. On some conditions,the guaranty will increase the returns to the banks and have the effective encouragement effect.The existence of the third-party guarantor will increase the availability of guaranty and reduce the possibility of credit allocation.The small and medium-sized enterprises credit guaranty institution in the form of a legal person as the third-party guarantor will strengthen the possibility for the small and medium-sized enterprises to obtain the guaranty and effectively alleviate the credit allocation problems facing the small and medium-sized enterprises.At present,the small and medium-sized loan guaranty market system of Foshan City is basically established and the guaranty institutions are mainly the non-governmental ones.In recent years,Foshan City has actively promoted the small and medium-sized enterprises loan guaranty institutions to expand businesses,increase capital and shares,expand the guaranty service range and alleviate the difficulties in financing of the enterprises.By the end of 2008,the guaranty industry in the whole city has accumulatively provided the financing guaranty of more than 18 billion yuan for nearly 5000 small and medium-sized enterprises of Foshan City.Viewed as a whole,the two classes of guaranty institutions of Foshan City have been established in the range of guaranty businesses.The first class of guaranty institutions are those with the good credit class,a large scale of businesses,many cooperating banks and wide operating region as well as good risk resistance capability.The second class of guaranty institutions are those with the credit class at the average level,great fluctuation of the range of businesses,single cooperating banks and centralized operating region,so the external economic environment and the bank credit policy greatly influence them.Although the operation of the guaranty industry in the whole city is good as a whole,there exist some deep-level problems.First,the difficulty in the risk management of the guaranty institutions is strengthened.Second,the risk sharing mechanism with the commercial banks has not been built.Third,the guaranty amplification times are low.Fourth,the branches are not monitored.Therefore,according to the present situation of development of the small and medium-sized enterprises credit guaranty market of Foshan City and the existing problems,the perfect small and enterprises credit guaranty system shall be built,the good interactions between the small and medium-sized enterprises, the guaranty institutions and the banks shall be gradually established,the healthy development of the small and medium-sized enterprises credit guaranty market of Foshan City shall be further promoted and the scientific and rational small and medium-sized enterprises credit guaranty system and the small and medium-sized financing system dominated by the governmental investment of Foshan City shall be finally built by strengthening the scale and roles of the policy-related credit guaranty monitoring system,building the re-guaranty institutions or guaranty funds dominated by the governmental investment, perfecting the credit guaranty monitoring system and accelerating construction of the credit evaluation system,etc.