Study On The Financing Of Small And Medium-sized Enterprises In China

Small and medium enterprises (SMEs) are of vital importance to the employment, economy growth and competitiveness of a nation or area, but there exists financing difficulty universally in SMEs because of SMEs' operation and information characteristics. Along with the development of market economy, western developed countries have enhanced their credit culture and law system, and market has created diversified financing channels and skills adjusting to the different development stages of SMEs. In addition, governments have paid great attention to SMEs' development, and set up special agencies in charge of establishing and implementing the policies of helping SMEs' development. All of these relieved the SMEs' financing difficulty, and SMEs radiate their vitality.Our economy is still experiencing the transition period. Most SMEs lack of financing channels, and the available channels aren't smooth. The financing difficulty has become the utmost trouble hindering SMEs' establishment and development. Nowadays our country is facing the huge employment pressure and in eager need of economic structure adjustment. It is unusually important to give energetic support to SMEs, and how to relieve the fund obstacle in the process of SMEs' development has become a great issue currently.This paper aims at analyzing the game relationships and difficult positions among SMEs, financial institutes and governments by using the techniques of game theory. On this base, the paper suggests that we should set about changing actions of every partner from the two aspects of financing environment and institutions supply.This paper has a systematic analysis on SMEs' financing difficulty in view of both theory and practice. Contents and conclusions are as follows.1. Systematic analysis on the characteristics of SMEs' financing market, including the characteristics of SMEs' financing, information asymmetry and its impact on SMEs' financing, and organizational characteristics and techniques of different financing markets.2. The paper has a well-rounded analysis on the reasons for SMEs' financing difficulty by using game theory and makes two ideas clear. On one hand, it is the imperfection of market supporting system to determine the trade actions of SMEs and financial institutes. On the other hand, the shortage of institutional supply has restrained the development of SMEs' financing market, thus another "incantation" to SMEs'financing.3. The fundamental reasons for SMEs' financing difficulty lie in the market imperfection, and it is an issue during the developing process. In order to relieve the SMEs' financing difficulty, the whole nation should endeavor to reconstruct the related institutions, thus to cultivate the normal relationships of market economy among SMEs, financing institutes, financing market and governments, then to promote SMEs' financing from all-grounds such as financing channels, methods and structure. In the long run, we should improve our market environment and existing institutions to cultivate an efficient market economy.