Chinese Sme Financing Problem

With the accelerating of economic globalization process and hotter and hotter the market competition is becoming, Small and Medium-sized Enterprise(SME) has already become the world subject for a long time. The SMEs have made a rapid development in China over the past twenty years after Reform and Opening-up. SMEs have already become one of the important support strengths of the national economy. The vigor of SMEs concerns not only the vigor of the whole economic competition, but also the prosperity and stability of the whole society. Experiences of the countries all over the world indicate that one of the most general and most key restriction factors that SMEs face is the financing problem. At present, the problem of financing channel is still a main factor restricting the development of SMEs in China. And this is also one of those "bottlenecks" that are most hard to break through. In this situation, it is meaningful to study the SMEs' financing problem in China. After the general description of the current financing situation of SMEs in China, this thesis analyzes the causes for the difficulty of SMEs' financing, and then introduces some support systems for SMEs' financing in foreign countries, and finally puts forward some suggestions and countermeasures to solve the financing problem of SMEs in China.This thesis consists of four parts.The first part includes two contents. One is the division standard of SMEs and the function of SMEs in China. It points out that SMEs play a very important role in our country. The other content is SMEs' financing channels and the financing structure of SMEs in China.The second part analyzes the predicament of SMEs' financing in China and also points out the causes. Firstly, it analyzes the direct financing predicament of SMEs, pointing out that financing obstacles exist both on the public capital market and the private capital market in China. Particularly, it analyzes the development obstaclesof Venture Capital in our country. Secondly, it analyzes the in-direct financing predicament of SMEs in China, pointing out that both sides of the bank and the enterprise have responsibility for the loaning problem of SMEs.The third part is the study of the financial supports for SMEs in foreign countries. It introduces the financial support systems of some foreign countries, e.g. U.S.A., Japan, Canada and Taiwan. It also points out that it is meaningful for our country to lake them as reference.The fourth part puts forward the countermeasures and suggestions to solve the financing problem of SMEs in China. The key point is to form the normal relationship of market economy among enterprises, financial institutions and the government. It is necessary to set up and promote the financial system and social credit system, and promote the channel pluralism, way marketization and structure rationalization of SMEs' financing.