Research On SMEs Financing

The SME financing problem has always been a popular research For a long time. However, characteristic and the degree of economic development is different while in different countries and regions.So we chose Xinyu City, as the research object of SMEs.In the first part of this article, we will introduces the research background an significance of the article. For small and medium enterprises have an important role in national economic development, We should be very concerned about their survival and development. In particular the problem of financingThe second part of the article, We introduce the related research and theories literature at home and abroad. The starting point is Modigliani and Miller's (1958) seminal paper on the theory of irrelevancy of capital structure. Modigliani and Miller outline conditions under which capital structure is irrelevant including no taxes, a perfect capital market, no bankruptcy costs, and full information. Subsequent studies have analyzed the existence of non-rational behavior and imperfections in the real world, and argue for the importance of the capital structure decisions of firms.The rest of the paper is as follows:Section 3 discusses the characteristics and financing situation of SMEs in Xinyu City. Section 4 discusses the empirical model and provides a description of the data an variables used. Then, discusses the result of the model. Concludes and policy recommendations are discussed in the last part of this paper.