Sme Financing Is Discussed

It has been 20 years from the beginning of open policy, the small and medium-size companies has been more and more important in our national economy .It was supported that more than 50 per of GDP was from the small and medium-size companies . At the same time ,the small and medium-size companies also absorb lots of unemployment and rural population. But almost small and medium-size companies in every country face the difficulty of financing. One newspaper in England said only 46% were satisfied with the support of bank, 35% of small company were satisfied with the available of loan, the satisfaction of cost in loan was only 13% and 7% was content with interest. And in our country 80% small and medium-size companies lacked capital, From these data, we can see the dissymmetry between the contribution and the difficulties. I hope this essay will be helpful the resolution of the question through my own opinions.Not like others theories are advanced at first in the essay, they will be the base of the entire essay. Firstly kinds of theories are set out, analyze, then summarize the disadvantage and benefit to our small and medium-size companies. At this base, the essay begin to analyze the causes of difficulty in financing ,the causes as following: from economy it includes cost of dealing and dissymmetry of information. The self of small and medium-size companies also one of factors. From finance it includes the particularity and the fact of our financial institution. From the government the absence of support is another cause.The purpose of analysis is to settle the question, reference is also useful to the settlement. The sustaining system in U.S.A, Japan and German are advanced. The essay suggests that the set-up of financing system is neededAt last the essay advances the suggestion to the question. Firstly, through kinds of ways to increase capital, such as effort of small and medium-size companies, set-up small and medium-size investment companies. Secondly, therevolution and creation of financial institution, such as the revolution and creation of state-owned bank, set-up small and medium-size guarantee institution and development bill market. Thirdly, reinforcement the function of government, such as set-up system of goal, administration finance and law, society.