Study To Small And Medium-sized Enterprises Financing Dilemma Of The Legal Response

Since reform and opening, China's rapid development of SMEs, has become an important force in economic development for China's economic growth has made a great contribution. In the establishment of socialist market economic system, promote rapid economic growth, maintain market prosperity, expanding employment opportunities, increase tax revenue has played an increasingly important role. However, for SMEs make a significant contribution to China's economic development, but also because in recent years, raw material prices, labor costs increase, banks tightening credit, increasing market competition and other reasons, the development faces many difficulties and constraints which affect SMEs major factor in the further development of the financing. The majority of SMEs, especially small and medium private enterprises is done by individual capital investment of capital accumulation, when the company reaches a certain size, especially the transition from labor-intensive to technology-intensive, the demand for capital will become more urgent. However, due to the government, banking, legal and other aspects of the current system policy restrictions and the shackles of traditional ideas of people, coupled with their own problems in the small and medium enterprises, leading to a relatively narrow channel for SME financing, a shortage of funds, which has become a major constraint for SME development bottleneck. National Federation of the first half of this year, 17 provinces and cities of a large survey of SMEs, the results show that the current degree of difficulty for SMEs to survive, even more than 2008 international financial crisis early. Monetary tightening, resulting in the vast majority of SME financing chain taut, more than 90% of SMEs surveyed said it could not obtain loans from banks. SME financing is not only China's problem is a worldwide problem, but the difficulty degree. Some of the world's developed countries and regions in the development of SMEs are also more or less experiencing financing difficulties, but to provide a wide range of government policies to support SMEs to help them overcome obstacles to SME Financing problems have been a better solution.Financing difficulties of SMEs in China are mainly the following reasons: First, inadequate legislation, law enforcement is not strict. Support SMEs financing legal system has not been constructed, small and medium enterprises by mainstream financial institutions discrimination is difficult to really deep on the immediate elimination; lax enforcement of existing laws and regulations, may not be implemented, lack of oversight mechanisms, so that banks in prudential supervision principle, it is difficult to mobilize to support SME development initiative and enthusiasm; and financing behavior of people in the law of the relationship between rights and responsibilities are unclear, the direct result of banks, security companies, venture capital company's profit-driven behavior, is caused by the "adequate" financial situation even more tense, the conflict between the relationship is more prominent. Second, due to the impact of the concept of planned economy, our national policy has been to support large enterprises tilt, support for SMEs has obviously not enough. At the same time across the country due to lack of a sound social credit system, government agencies, security agencies in the specialized financing institutions and the absence of policy-oriented financing, increasing the financing difficulties of SMEs. Third, financial institutions policy imbalances, has a direct impact on the support of small and medium enterprises initiative and enthusiasm. Finally, SMEs themselves as small-scale capital, financing costs are high, financial systems, internal control system is imperfect, and other factors limit their financing channels.Based on the analysis of the status of financing for SMEs, focusing on analysis of the causes of SME financing, legal advice and put forward relevant measures, such as the establishment and improvement of SME credit appraisal system, set up a special bank offers a variety of financial services for SMEs business window, to strengthen internal management, improve the system of chattel mortgage registration, clearing the way for SMEs to finance and provide convenience. With the gradual implementation of these measures, the financing problem of SMEs in China is expected to be effectively resolved.