The Choices Of SMEs Financing Modes Under The Background Of Government Supports

Since over 30 years' reform and opening up in China,our economy has been expanded rapidly.As the system of market economy in China continuously improved,the small and medium sized enterprises(SMEs) have been rapidly developed,whether the number of SMEs or the comprehensive strength of SMEs.The SMEs have become the important social and economic powers,who play the decisive roles in various aspects of economic and social life nowadays.The SMEs take an irreplaceable role in insuring national economic development,alleviating employment pressure,promoting prosperity of the market and social stability,speeding up technological progress,increasing the number Of foreign exchange through exports and so on. They are the most important driving force for the development of society and economy.However the development of the SMEs is not easy.The financing difficulty for SMEs has always been an obstacle to the development of SMEs.The SMEs accounting 99%of registered enterprises got only less than 20%of loan sources.The importance of SMEs and their financial support are very asymmetric.In the recent years,the Chinese government stepped up the support for SMEs development, constantly drafted out the policy of supporting development and financing of SMEs,increased the public financial support,set up innovation fund,special fund for SME development.However,in the terms of the results of those policies,the difficult problem of financing of SMEs has not been solved fundamentally.This thesis has elaborated the SMEs definition,analyzed important status and current situations of SMEs in the economic development and pointed out the importance of resolving the problem of SMEs financing.According to the environment and the structure of the SMEs financing,the thesis has analyzed the SMEs' present condition of financing,found out the reason of difficulty in financing.What's more,it has also consulted the foreign advanced experience and the need of our economic development for reference,and then put forward the financing patterns, including the macro model and micro model.In the fist chapter of introduction,it briefly introduced the research background and significance of research,related researches at home and abroad,the research framework and research methods as well as the innovations and shortcomings of the thesis.Chapter II introduced the situation about SMEs financing in China.Firstly,the paper introduced the divided standard of SME and elaborated the important roles of China's SME in national economy.The roles of SMEs as follows:SMEs are the basis of market,maintain the market competitive mechanism and promote large-scale socialized production;SMEs is an important source of technological innovation;SMEs can absorb a large number of workforce and alleviate the problem of employment;SMEs can promote the development of foreign trade;The products of SMEs can meet the diversified and personalized demands of consumers.This chapter also analyzed the root reasons from three perspectives of endogenous financing,direct financing, indirect financing.Despite government made some policies to support innovative enterprises listing and financing,due to various subjective and objective reasons,stocks,bonds and other financing channels both had strict threshold.The direct financing channel is very narrow.The possibility of making use of capital market to finance is small.In regard of indirect financing, Sources of funding excessively focus on bank credit.In all the financing channels of SMEs,the proportion of exogenous financing is a very small.SMEs mostly financed by the endogenous channels and were highly dependent on it.The endogenous financing can't meet the financing need which seriously hindered the development of SMEs.There are common reasons as well as special ones in the SMEs financing issue.Through the analysis of the reasons for financing SMEs, the main reasons include internal and external ones.The external reasons are inappropriate national policies,imperfect laws and regulations,imperfect credit guarantee system and so on.The internal reasons involve the high risk of SMEs,non-transparent financial information,ambiguous property rights,low level of credit.ChapterⅢintroduced separately the experiences on SMEs financing of developed countries and some regions in China.Solving the financing problem must get help from government interventions.The Government has to act as the role of socio-economic managers,with the "visible hand" to guide the market supply and demand offunds.What's more, it has also consulted the foreign advanced experience and the need of our economic development for reference,and then put forward that it should enhance the SMEs competitive strength and reputation levels by perfecting SMEs financing guarantee system,building up the service system for SMEs and strengthening the government supports according to the financing characteristics of our SMEs.The final purpose is to help SMEs boost the financing status and resolve the problem of financing difficulties.ChapterⅣput forward the choice of SMEs financing patterns.Based on new institutional economics theory,the author point out that the financing mode is the government and the market-mixed financing model.Based on the life cycle of business theory,the different stages of companies' development are facing different financing needs.SMEs should choose a suitable financing model,appropriately adopt some innovative financing modes.