Study On The Development And Financing Of SMES In China

The development of productivity, and the fast development of science and technology promote the development of the middle and small enterprises (SME), making the division of social work optimized, the specialization in producing improved. All these establish a foundation for the existence of those SME. Because of the change of the market demands, relationship between the SME and big enterprises has turned from "direct competition" to "cooperation". SME now is very important in modern economy.In China, MSE have played a great role in economy especially after the reform and the opening. But till now the SME' potential and advantages still need to be explored. The major problem is attributed to fund shortage, which is led by financing difficulty, to great extent restrict their development.Because of Market Economy's system, SME' own weakness, and the particularity of finance industry, financing difficulty is a general problem world wide in SME. The problem of financing difficulty in China's SME is especially complicated.In this paper, the author analyses enterprises' financing behavior, the reason of SME' financing difficulty, and the situation in China's SME. Furthermore, taking other countries' experience into consideration, suggestions are made to solve our country's SME' problem, i.e. to perfect financial market, government's objective orientation and service, SME' self-improvement. Above all, the condition of financing difficulty in China's SME need to be improved in an integrative and dynamic way.