Sme Financing Mode Of The System Study

The development of Small & Medium Enterprises has been the highlight of most of countries' governments since 1990. The reason is that the Small & Medium Enterprises play the indispensable role hi improving employment opportunities, stimulatmg the business, increasing the income and forming the proper structure of domestic economics.The difficulty of financing is bottleneck of the development of Small & Medium Enterprises. As the finance bridge between Small & Medium Enterprises and exterior economic environment, the financing type affects directly the available financing channel and efficiency of Small & Medium Enterprises by its development and operating cost. The following thesis demonstrates that the institutional restriction of the financing type causes the difficulties of financing through the transverse international comparison and the lengthways-historical comparison. The author believes that the creation of the forced regulation supply is key to resolve this problem. On the base of the above-discussed theory, the author suggests the method to construct the financing system frame of Small & Medium Enterprises in the following thesis. Furthermore, he brings forward the problems to which we should pay attention In the construction under the background that China is a developing country, which is in the reform process, with obvious finance-restraint character.