Sme Financing In China Problems And Solutions

Small-Medium Enterprises (SMEs) give much support in economic growth,technology innovation,employment as well as foreign trade and restrict monopolization, as a main part of modern economy, present financing system can't catch up with the need of SME. Financing difficulty disturbs most SME.The existence and development of small and medium-sized enterprises not only are important components of the economy of various countries, but also are great common dificult problems in the world. The purpose of this paper is to analyze the essential and status quo of middle and small enterprises' finance difficulty in China, and to bring forward reasonable measures.The whole paper is divided into three parts as folows.Firstly, the paper introduces the divided standard of SME and elaborates the important roles of China's SME in national economy. Nowadays, a set of divided standard theory system has been set up by combing scale and status of SME. From 1998 to now, the SME divided standard has been changed three timesSecondly, the paper introduces the present financing situation of SME and analyzes the cause of financing difficulty deeply in clue of financing method. From the view of capital source, financing is divided into inside-financing and outside-financing. From the point of channel, financing is divided into direct financing and indirect financing. But no matter what point we see from, the situation is not satisfying. The paper tries to give the answer of this issue from three aspects: China's historical sediments, inherent demand of economic law and the factor of SME themselves.Lastly, analyses, compares and draws on the successful experience of financial systems in other countries (regions). The fast 4 sections show the SMEs financial systems comprising indirect financing, direct financing and specific relevant supplementary reform in USA, Japan and Germany, the paper atempts to solve the financing problem by means of national supervision system, directfinancing, indirect financing and quality of SME themselves.