Plight Of The Chinese Sme Financing And Its Countermeasures

At present, China has established the basic economic system which is public ownership dominant and diverse forms of ownership develop together. In the process of establishing basic economic system, small and medium-sized enterprises (SMEs) have experienced from "Allowing exist" to "necessary complement" to "an important component of the socialist market economy" with the result that "we must unswervingly encouraging, supporting and guiding non-public economic development". SMEs have provide 80 percent of jobs for the community, including transferring rural surplus labor force and have played an important role in China's economic construction. However, as a result of the inadequate of China's financing laws, regulations and policies, as well as the defect of SMEs itself, financing dilemma which restrict the development of SMEs has become a major problem. In particular, since 2008 under the background of the global financial crisis, China's SMEs face enlarging operation risks of the economy, the problem of financing stand out more prominently, Financial difficulties even more serious.. In this context, it is of great significance for China's maintaining growth, adjusting structures, benefiting people's livelihood and maintaining stability to study how to further help SMEs to break the financing problem, reduce the pressure on fund running. ChapterⅠof my paper begin with the status quo of China's SME financing, mainly focused on illustrating the role of SMEs in the national economy, and analysis of direct and indirect financing situation of China's SMEs. ChapterⅡpresents the main problems financing dilemma in China's SMEs financing, which are lacking of financial institutions. directly service for the SMEs; lacking of credit guarantee system for SMEs to loan; lacking of laws and regulations relevantly to support SMEs financing. Then from enterprises, banks, government three sectors analysis the reason why China's SMEs financing so difficult, And compared to financing of foreign SMEs, summed up the experience of foreign. practice of SMEs financing which might Enlighten our SMEs financing. ChapterⅢis mainly elaborate countermeasures for resolving the plight of SMEs financing from six aspects, Namely:first, improving the banking sector on SMEs credit policies; second, creating conditions for SMEs to fiance directly and indirectly; third, improving the credit guarantee system; four, establishing and improving the financing policies mainly supporting for SMEs; five, accelerate making the laws and regulations of SMEs financing; six, establishment of credit information system and credit evaluation system of SMEs'financing.My paper using the method of "conflict analysis", through analyzing the major constraints to SMEs'financing, seizing the main contradiction and proposing countermeasures to solve the financing problem. Based on practice of the national response to the financial crisis, this paper presents that in order to increase SMEs' financing capacity the Government should make some financial contribution and increase the intensity of the security policy to enhance the credit of SMEs; Banks are required to improve the SMEs'credit policies; SMEs are need to establish credit system and credit evaluation system, which are also the innovation of this article.