Study On The Financial Problems And Countermeasures Of SME In Xiangtan City

SMEs are an important force in the national economy. The healthy development of SMEs has great strategic significance for the implementation of strategic decisions which are "protecting the people's livelihood, promoting growth." To Xiangtan City's economic development, small and medium enterprises are the important driving force to promote Xiangtan economic growth, create jobs, increase revenue and market prosperity. They play an irreplaceable role for the social stability. However, financing difficulties and shortage of funds have become the biggest obstacle to the survival and development of SMEs SME financing is not only the difficult problems in Xiangtan City, but also a common problem in the whole country. Xiangtan is an inland city and Hunan old industrial base, which occupies a very important strategic position in the province's economic layout. Xiangtan City is currently facing two major strategic opportunity, the construction of "two society' and national implementation of the experimental zone "Rise of Central China". Taking Xiangtan as the sample, studying and solving the financing problem for SMEs in Xiangtan City, as well as the province's economic development and social stability has very important significance. It also has a model role to the inland cities which rely on endogenous forces driving economic growth. It's also a good sample to promote industrial upgrading and restructuring. This article analyzed the underlying causes of difficulties in small and medium enterprises financing through a large number of detailed data analysis. The government is proposed to build the environment for SME development from government, business, three-dimensional perspective of financial institutions, based on the successful results of SME financing and experience from other cities, based on the actual Xiangtan. Enterprises should continuously improve their own quality and strengthen the foundation of their own financing. Financial institutions should promote financial innovation and improve financial services for SMEs. The government, enterprises, financial institutions work together to solve the financing difficulties of SMEs and provide policy recommendations for them.