Study Of The Means Of Financing For Smes In China

With the deepening of marketing economy and reform in China, small-and-medium-size enterprises have accounted for half of the total economy. Unfortunately, they are facing many difficulties nowadays, such as shortage of capital, scant innovation, lack of human resources and nonstandard manganese so on and so forth, financing problems, in particular, has become a "bottle neck", which severely hinders the economy. Essentially, financing ways are systematically arranged, especially under marketing economy, the financing modes will not only be confined with the enterprise itself, but be bounded on economically financial circumstance and financial system of a country.Financing difficulties of small-and-medium-size enterprises is a worldly problem. In order to solve this problem, developed countries adopted many financing methods that suit the size of the enterprises, which include the modes, and policies of government financial support. In western countries government plays a key role in the financing process of these enterprises.In China, there are three main factors that effect the financing problem of small-and-medium-size enterprises, namely, enterprises themselves, financing organization and Government of which high managing risks, poor profitability and shortage of fixed assets are the interior reason, more important is that the information between bank and enterprises is not on the basis of reciprocity and the loans are cut down, the financial circles in China are being integrated. The financial circumstances and systems led by the government are the deeper reasons.To solve this question is a colossal systematic project, the focus of it lies in the enterprises' financing capability, and while the Government's support and appropriate intrusion is the fundamental part. As for the indirect financing, build perfect banking system, improve the credit vouching system and finance secured system, set up developing funds and funds of starting an enterprise; as for direct investment, we should build up the multilevel direct financing system which is based on starting enterprise market including venture investment market, firm bond market. As for government, theyshould enhance the strength of capital support and construct a favorable environment for small-and-medium-size enterprises, encourage financial innovation and supply the new financial products for small-and-medium-size enterprises.