Research On Questions Of Financing In Middle-small Private Enterprise In Dongying City

Based on the description of the plight of financing of the private medium andsmall-sized enterprises in Dongying City, the thesis made an intensive study on many aspectsof the reasons of financing difficulties and gave recommendations accordingly. Through thisstudy, comprehensive, all-round policy reccommendations on improving the status of theprivate small and medium-sized enterprises in Dongying City are propsed for the decisionmaking of relevant departments.The specific description on the financing difficulties of private small and medium-sizedenterprises of Dongying City is made and the causes of financial difficulties are analyzed.Today, the cost of financing for private small and medium-sized enterprises is high, thechannel is narrow, difficult, high threshold. The factors such as self-mismanagement, poorcredit, weak anti-risk ability, profit-oriented financial institutions values, mechanisms,institutional arrangementsand establishment are not conducive to smooth access to a lot ofmoney for them. In addition, an imperfect external security mechanism and insufficientgovernment policy support result in more difficultie in capital assembly.Finally ideas and suggestions to solve the problem are put forward in terms ofenterprises, financial institutions, government policies. Enterprises need to improve theirquality, strengthen credit building, management and governance capacity building, expandexternal financing sources, and build clusters of small and medium enterprises in order toprovide mutual guarantees and financing. For private small and medium-sized enterprises,financial institutions need to improve their services, their credit policies, expand their serviceorganization, and abundant supply of thier financial p roducts. Credit risk controlmechanisms need be innovated to develop private finance. The Government should alsoincrease the risk of their investment, and increase its policy support and improve the securitymechanisms to create a favorable external environment for the private small medium-sized enterprises financing. The innovations of the thesis lies in comprehensive and systematicexpansion of the ideas and suggestions on private small medium-sized enterprises financingin Dongying City from the multi-perspective consideration of the issue.