The Study On Financing Obstacles Of SMEs In Xi'an

In the contemporary process of economic development, Medium and Small-sized Enterprises as the main part of the micro-economic sector in many countries, It has been worldwide recognized that SMEs has played an essential role in promoting economic development, increasing employment and ensuring social stability. Despite governments paying great attention to the development of SMEs, lack of funding, difficult to financing has always been existed in SMEs'development process. With the deepening of the Western Development, SMEs as an important part of the economic development of Xi'an, it is deserved that we analyze the financing problem of SMEs in Xi'an, and try to come up with some effective solutions.This article mainly utilizes the information asymmetry theory and Credit Rationing Theory. Based on the characteristics of small and medium-sized enterprises in Xi'an, then combined with the SMEs financing present situation, and the research focus on the externalities of SMEs' development, in terms of the indirect financing platform construction and the government's policies, finally proposed some practical solutions through the deeply analysis of the SMEs' financing difficult problems. The researches in this paper include: Firstly, it introduces the domestic and foreign financing researches of SMEs, summarizes them, and makes a brief review. Secondly, it simply defines the concept of SMEs and SMEs' financing form, and summarizes the certain theories which will be used in this paper. Thirdly, it studies the development of SMEs in Xi'an, focusing on the SMEs' financing environment, financing status and the government's activities thought the SMEs' financing process, the key problems are pointed out, then analyzes the reasons for SMEs' financing difficulties in SMEs and their financing externalities. Fourthly, it introduces the available experiences of other countries, the experiences of Unite State, Japan and Germany provide us some significant inspirations. For instant, establishing perfect financial support system, policy support and credit guarantee system. Finally, it puts toward a solution of SME financing in Xi'an. Focusing on the problems of the indirect financing platform construction and the government's policies, we should combined with the SMEs'developing present situation, then strengthen the support to SMEs by the financial institutions and the government, eventually achieve the SMEs'development goals.