Study On The Financing Of Small And Medium-sized Enterprises In China

Small and medium-sized enterprises are active forces in the economic development in China and important component in our social and economic development. They can improve market efficiency as well as they can provide more employment opportunities. Besides, they are decisive forces for shifting economy development mode of China. However, the development of small and medium-sized enterprises is not smoothly forward, financing difficulty is the most outstanding of various difficulties, it is also a problem in worldwide and a long-term subject. In analyzing the reasons for such problems, we not only consider the enterprises themselves, financial institution, government department, etc, but also consider the special historical term in which Chinese economy is in the state of shifting and structure regulation, so the financing plight for small and medium-sized enterprises is both outstanding and complex. This article first presents the entire situation of the financing for small and medium-sized enterprises, analyze the unique characteristics shown by small and medium-sized enterprises, and compare it with that of mature market economy countries. Then, in looking for the solution for the financing difficulties of our small and medium-sized enterprises, the article holds that it is necessary to use for reference the policy practices which promote the financing by developed countries for small and medium-sized enterprises, and combine the visual nation situation of China and truly improve the public service level by governments, build and complete the law system for our small and medium-sized enterprises, promote the system construction of the credit guarantee for small and medium-sized enterprises, actively develop non-state owned financial institutions in mid and small levels, encourage risk investment and the investment for enterprise building so as to promote the raising and developing for high technical small and medium-sized enterprises.