An Approach To The Financial Problems In Small And Medium-Sized Enterprises Under The Circumstances Of Asymmetric Information

Since the reform and opening-up policy performed, our national economy has made great achievements. The small and medium-sized enterprises(SMEs) are important and key creative strength to prop up this growth. They act the groundwork role as numerous plants in the "economic ecosystem equilibrium" in our country.However, the development of SME encounters with a series of new Challenges caused by the adjustment of economic structure, the fluctuation of the relationship of supply-demand in markets, the international competence after entering into WTO and the deepening of system transforming and etc. Many difficulties come off, such as lagging of management, limitation of laws, lacking in qualified persons. Above all, predicament of financing is becoming the crucial factor to restrict the development of SMEs.Many scholars have done a great deal of researches in this field, but they only have put forward some policy advices and not made further theoretical and empirical analysis. In 2001, The Nobel Prize in Economics did contribution to information economics. How to use it to interpret the actual problems in China? It has become one of the important subjects facing us.The essay based on the researching results of other scholars. First of all, the essay introductions SMEs financing on the basic theory and the status. The essay systematically analyzes the reasons of the small and middle-sized enterprises' financing strait in perspective of relationship between the enterprisers, banking institutions and the government. The essay also set up the model of SMEs credit allocation based on asymmetric theory and the credit rationing model of Stiglitz and Weiss, which is aimed to find out the deeper reason of the small and middle-sized financing dilemma. The analysis shows that information asymmetry in financing market causes the requirement of credit couldn't be fulfilled and hindering the growth the small and middle-sized enterprisers. In addition, the essay gives the suggestion about how to free the credit difficulty of small and middle-sized enterprises.