The Analysis And Countermeasure Of The SME Financing Embarrassment

During the past 30 years of reform and opening up, China's small and medium-sized enterprises (SMEs) have been springing up rapidly. Up until 2006, the number of small and medium-sized enterprises in China has exceeded 42 million, making up more than 99.8% of all China's industrial enterprises. The total value of industrial output for SMEs accounts for 67.71% of the gross output value of all China's industrial enterprises. The consumer goods production by SMEs accounts for 60% of the total sales of all enterprises in wholesale & retail trade. The taxes paid by SMEs account for more than half of total taxes paid by all industrial enterprises. Additionally, SMEs employ about 80% of the workforce in cities and towns. SMEs are undoubtedly playing a critical role in China's economy growth. For a variety of reasons, the financial support to SMEs has not always proportionate to the amount of contribution SMEs has provided. Financing difficulty has become a serious issue for the development of China's SMEs.It should be noted that the theory put forward by the practice of innovation is the task of history demands of us.To analyze the causes of and identify essential resolutions for the financing difficult faced by SMEs has empirical significance for SMEs development, which will in turn contribute to the sustainable, rapid, coordinated, and healthy development of China's economy. This is a task derived from practice and also a mission for economists.Through an in-depth analysis of causes for SMEs financing difficult and lessons derived from experiences of the developed countries, this thesis provides resolutions to alleviate the financing difficulty faced by SMEs discussion of the implications for China's SMEs financing from an international comparison.