Research On Financial Support For SMEs Development In Western China

Since reform and opening, SMEs in China has been developing rapidly,and the contribution of SMEs to the national economy continued to improve.As the deepening reform of the socialist market economy, SMEs has become an important force in China's economic construction for their flexibility and fast decision-making mechanisms. they plays a very important role in promoting the rapid development of national economy, solving the employment of urban and rural residents and increasing the state and local taxes.As China roars, western economy is developing fairly fast at present, economic aggregate grows significantly, productions of industry and agriculture grow stablely. People's living standards are greatly improved .However, it's pace can't catch up with the whole country from the general trend. The overall economic development still lag behind of the Well-developed eastern and central part. SMEs have contributed a great deal to promote the development of the western region. they are gigantic dynamic force of economic development. However, since a series of problems of the SMEs such as the late start, small size ,weak risk-resisting ability, especially the difficulties in financing, rapid and healthy economic development of the western SMEs are seriously restrictedCurrently all the countries in the world are actively preparing for the new Large-scale development round of the Global economy in the post-financial-crisis era, China's economy has entered the most crucial phase. Under the circumstances, To solve the problem of difficulties in business financing in the West, besides strengthen internal managements of SMEs, identify the enterprise's market position, enhance the capabilities for technological innovation. Financial support to SMEs should also be increased by all the levels of government and the financial institutions. Based on the SMEs & financing theory, this paper analyses the situation of financing status of SEMs in western China and existing problems, some suggestions are given about how to deal with the financing difficulties.