A Research On Financing Of SMEs In The Sperspective Of Non-Government Finance

Thirty years of reform and opening-up is a dynamic growth of small and medium-sized enterprises (SMEs) three decades. China's small and medium-sized enterprises development report 2009 pointed out that small and medium-sized enterprises already accounted for 99.8% of total number of enterprises in China, and created about 60% of its GDP. But inevitably, financing difficulties, the same to the other countries in the world, is a constraint to the development of Chinese small and medium-sized enterprises. Only 13% of small and medium-sized enterprises in the EU countries face financing difficulties, but the financing difficulties of SMEs in China, where accounts for more than 40%, much higher than in the European Union.lt can be seen that the problem of financing is more serious in Chinese small and medium enterprises. And in fact, Non-Government Finance has always been supporting the development of SMEs, especially as an important source of funds for small businesses during a special period. Unfortunately, however, the private financial organizations tend to be defined as an illegal organization, not only that it has no legal status, and its role in the development of SMEs is also often neglected. Therefore, the article is based on the perspective of Non-Government Finance to study SMEs financing.The purpose of this study was to explore the relationship between SMEs financing and Non-Government Finance, to promote SMEs financing, and to improve the living environment of Non-Government Finance. First of all, from the theory and realistic view that the role of formal financial in SMEs financing is inadequate, Secondly, it demonstrated the adaptability of the financing of Non-Government Finance for SMEs from the perspective of evidence, Then, it descript the status of Non-Government Finance for SMEs from two aspects of qualitative and quantitative, finally it propose the suggestion that be standard Non-Government Finance for SMEs development.The main ideas of the dissertation are as follows:1. The pace of development of SMEs and its contribution to China's economic development and the SMEs'loan amount from the formal financial institutions is directly proportional. Financing difficulties was faced by SMEs in general, while the formal financial constraints are a major cause of their financing difficulties.2. Non-Government Finance has a great deal of flexibility, not only has the competition, and has a complementary relationship with the formal financial markets, which can overcome the financing barriers between the SMEs and the informal banks to meet the financing needs of SMEs, and make up the credit gap of formal financial stock market, then provide a strong funding for the development of SMES.3. Non-Government Finance is very effective channels for SMEs financing, especially for those small SMEs in the early days. At the same time, the Non-Government Finance in finance, is not just the helpless choice of SMEs in the face of the formal financial constraints, and also the freedom to choose of SMEs.4. At present, China's private financial market is still in Non-standard condition, and there are certain risks, so it isn't the need to establish the monopoly market of the formal financial institutions no longer, but the modern financial system are met by both private financial markets and formal financial markets.The main innovative points of the dissertation are as follows:1. There are so many the studies on the financing problem of small and medium-sized enterprises, but little research the role of the Non-Government Finance for SMEs. This paper discusses the answers to the financing issues of SMEs financing, and use supply and demand balance analysis of the economics to demonstrate the poor efficiency and credit gap of the formal financial for SMEs.2. This paper demonstrates that the loan cost of private financial sector will be lower than the cost of formal financial institutions for the enterprises which risks are above the critical point. While for the enterprises which risks are below the critical point, the loan cost of formal financial institutions will be lower than the cost of private financial sector by the theoretical analysis model of the Non-Government Finance's adaption to SMEs financing. In other words, to some extent, private financing is the free choice of SMEs, not just the helplessness of the formal financial constraints.3. It draws the curve of fund allocation efficiency, and think that there is the best rate which make the best efficiency of fund allocation by differentiating the flexibility between strong position need group and week position need group in private lending market in analyzing the effects of Non-governmental lending rates.4. This paper describes an example of Wenzhou state of development of its Non-Government Finance, in particular, in using statistical correlation analysis, obtained in Wenzhou City, the local private investment plays a key role in economic development, while the formal private sector investment in order to Relying on Non-Government Finance.