Research On Hefei SMEs' Financing Predicament And Its Resolving

Recent years, with the implement of strategies to promote the rise of central China and rapid development in economy in Hefei Municipality, small-and-medium-sized enterprises spring up quickly, which has contributed to the economic development, social stability, scientific innovation and cultural prosperity. They play a very important role in national economy. Nevertheless, the advantageous role of small-and-medium-sized enterprises does not necessarily bring about advantages in getting access to financing. On the contrary, more enterprises stuck into the state of limited access to financing because of being in disadvantageous state, which makes them hard to develop, especially after the outbreak of financial crisis. Then what caused it difficult to have access to financing in small-and-medium-sized enterprises? Many specific reasons help explain. Meanwhile reflections lie in whether there are good ways to solve this problem and set up a good settlement mechanism so as to break through the bottleneck in order to promote rapid development in small-and-medium-sized enterprises and level up staying power to develop economy. This article does some research based on the above thoughts.Firstly, it points out the fact that small-and-medium-sized enterprises in Hefei still face the limited access to financing, so it is meaningful to study on how to sort out the problem. Meanwhile it illustrates the content and methods in research, puts forward research frame and stresses the creativity and defects in the article.Secondly, after categorizing and analyzing certain theories, it raises the supporting concepts and also makes an overview of domestic and international publications, summarizes main achievements of related research and explores its appropriate and inappropriate parts in accordance with the national condition.Thirdly, it expounds the main performances in the financing difficulties of hefei small-and-medium-sized enterprises, and finds that SMEs'financing channels lies mostly in outside help, which makes bank credit a major external financing way, so the difficulty in access to financing is mainly the difficulty in bank credit. Then, it analyzes the factors that may cause the difficulty in access in financing from internal and external aspects dimensionally. In the first place, it studies the influences brought by the scale, type, management, and way of act on access to financing. Furthermore, it finds out some irrational behaviors. Besides, other external factors like the malfunction of government and ineffectivity of policies also affect the access to financing in small-and-medium-sized enterprises.Fourthly, taking Company C for example, it takes a brief run-down of current situation in development, and analyzes the difficulties in access to financing and the main practices and measures to solve its financing difficulties.Fifthly, it provides some target-oriented advices and suggestions from the aspects of enterprise itself, financial institutions and government based on the analysis of factors affecting access to financing, and Combining with the successful experiences of C company in the financing practices. The enterprises should accelerate self-reformation to be the high-qualified enterprises. Governments should also provide more instruction and support. Financial institutions should change operation concept, eliminate discrimination and improve service skills thus to tend to provide high-level service to the small-and-medium-sized enterprises. In the meantime, internal causes decide. So enterprises should alter themselves to get favor from financial and guarantee institutions, and that is the key point. Government, as well as financial institutions, are just assisting and boosting as external causes. The destination of their improvement and support can only come down to the promotion of comprehensive quality in small-and-medium-sized enterprises so as to become the first-class enterprises, which will gain the confidence and help from financial and guarantee institutions and capital market. That is the way to resolve the problem.In brief, the article intends to suggest some applicable ways to help solve the problem of limited access to financing through the analysis of current situation. Taking Company C for example, it hopes to provide reference for enterprises of its kind. While it also aims at presenting some suggestions for government and financial institutions.