Research Of Financing Issues Of SMEs

According to statistics, small and medium enterprises ("SMEs")in China currently stands at 29,300,000, accounting for 95% of the total number of enterprises. Their output value total profits, taxes and export volume accounted for 60% 40% and 60% of those of the domestic enterprises respectively . Moreover, small and medium enterprises created 75 % Of the job opportunities in urban area. China's small and medium enterprises has become an important and dynamic force for economic development and plays a strategic role in the national economy. However, financial constraints have become the"bottleneck"for their further development, the solution of which has become what we need to consider seriously. From 2005 onwards, the financing of small and medium enterprises has been taken into account of the government departments, banks and many small and medium enterprises .Some of the National Congress Representatives have written in specialized research report in hope of addressing this problem through the relevant authorities as soon as possible, but nearly 3 / 4 of small and medium enterprises still hold the opinion that the difficulties in financing is the most important and insurmountable obstacles in the development of enterprises.SMEs are important force in the development of the national economy the status and role of which are undoubtable, although the restrict in the SMEs'self-condition and economic background results in the current phase of the "SME financing difficulties." In this paper, I will discuss the state in quo of the SMEs'financing in popurse of the solutions for ideas and methods of SMEs'financing.In this paper, based on a systematic study of economics and finance theory and PRC laws and regulations on financing of small and medium enterprises, by investigation in-depth study on the reality, I understand the state in quo of SMEs'financing, analyze its problems and do intensive research on the SMEs financing system's reform and further development. The main methods mainly used of this paper are: a) theory analysis. the financing of small and medium enterprises is a complicated system, which is involved in the enterprises themselves, financial institutions, policies, systems, concepts such etc.. This article try to use economics to explore the issues of the SMEs'financing and analyze legal system of SMEs'financing from the perspective of law; b) comparative analysis. The use of comparative analysis focuses mainly on the differences of the financing environmental and measures of domestic and foreign SMEs and practices in regions with different level of economic development in China; c) empirical analysis and normative analysis. This paper uses empirical and normative analysis methods to analyze the current situation of SMEs'financing, the impact of factors, the existing problems, as well as how to rebuild small and medium enterprises financing system etc..Through the research with variety of methods, I believe that the success of small and medium enterprises to overcome the common difficulties in financing and to meet its funding needs require firstly the promotion of the SMEs'own quality and its systematization, secondly the improvement of the economic and financial environment for SMEs'external environment and the construction of a well-established rural financial system in order to satisfy enterprises'financing demand and thirdly the help of government departments, which are supposed to transform their functions, strengthen the sense of service and multi-coordination and provide stronger support for SMEs'financing.Although this article has explorer in financing of small and medium enterprises, I also hope that these preliminary research will lead to further realistic research results.