China's Sme Credit Financing Problems Of Economic Analysis

Medium and small-sized enterprises play a vital part in our national economy. However, at present, they both face many problems, due to the lack of current fund-raising channels as well as their financial conditions, which, in turn, will unavoidably restrict their further development, or even has a negative influence on the whole national economy. With view to the fact the funds in the society enter into credit organizations mainly in the form of residents' savings and approaches to raise funds are mainly in form of credit fund-raising, this paper focuses on analyzing the reasons why the credit fund-raising is difficult and then put forward some corresponding resolutions to this issue. The reasons of difficulty on the credit fund-raising of medium and small-sized enterprises are caused by its own and the system of crediting organizations. These factors, such as the defects in title of state-owned and collective medium and small-sized enterprises, legal ambiguity in title of civil-owned medium and small-sized enterprises, family-like management, reduce the economic efficiency and limit the ability to raise funds. As for the systematic reason and different understanding of information status of medium and small-sized enterprises such main credit systems as the four state-owned commercial banks lead to the reductions of supply of effective credit funds. To solve the issue, the author points out that on one hand, medium and small-sized enterprises must strengthen their own establishment in order to enhance their fund-raising ability, on the other hand, it is necessary to set up their credit system. The reform of title system of state-owned and collective medium and small-sized enterprises, together with the renovation of management mode of private-owned medium and small-sized businesses and the legal establishment of further perfecting protection of private-owned property right, will benefit the enhancement of economic efficiency of the above enterprises as well as their abilities to raise funds. The reform to increase the quantity and quality, together with the establishment of medium and small-sized credit systems, will enhance the capability that crediting organizations supply funds to medium and small-sized enterprises.