Research On Financing Methods Of Small And Medium-sized Enterprises

The Chinese Small and Medium-sized Enterprises (SMEs) is playing an important role in the development of Chinese economics. The development of SMEs is restricted because of the difficulties of SMEs'financing in our country. If there's no reasonable way to solve the problem above, the development of SMEs and its international competitiveness would be greatly affected in a negative way. With a review of the Capital Structure theories, SMEs'Capital Financing theories and Lifecycle of Enterprise theories, we tried to determine the causes of the difficulties of SMEs'financing, and analyzed the choice of SMEs'financing means based on different life cycle,. All these are expected to serve for the development of SMEs.In this paper, some domestic and overseas scholars's research findings were firstly reviewed, on this basis, fundamental characteristics of SMEs financing were systematically investigated, and the difficulties of SMEs financing were dissected from subjective and objective factors against SMEs financing. To this key issue, in view of the influencing factors of how to select suitable financing methods, a AHP model, which is suitable for selecting SMEs financing means, was established, which provides scientific basis for the financing strategy formulation. Combined with the characteristic of SMEs'life cycle, a mixed mode combination which is suitable for SMEs financing was proposed.Finally, according to the difficulties of SMEs'lifecycle, we proposed a integral thinking to improve the condition of SMEs financing from three aspects, that is, efforts should be made to improve comprehensive qualities of SMEs, meanwhile pluralism, multi-level financial system should be constructed and government should build a better financing system to serve for SMEs.