Countermeasures Of Small And Medium-sized Enterprise Financing Difficulties

As the most vigorous and vital group, national companies accounting for at least 99% of SMEs in china’s socialist market economy have become one of the important engines of the economic growth of china. SMEs have become the main force of China’s scientific and technological innovation in improving the economy and maintaining the vitality in market competition industrial restructuring and settlement of employment. The status of SMEs in the national economy is playing an important role.However, due to their small scale, the instability of operating conditions and the issue of low creditworthiness and so on, the bank loans are hard for them to achieve.This paper starts from the significance of the existence of China’s SMEs. The layers of the system analysis are based on the problems of SMEs themselves, the banking factors and the social aspects of the Government. So, identifying the underlying causes of SMEs financing in China and seeking solutions to the problems and countermeasures become the author’s purposes of writing this paper.This thesis is divided into 4 sections marked by logical sequences. The first part introduces the meanings, features and actions of SMEs. The second part presents the status of SMEs’financing nowadays. The third part analyzes the causes in financing and identifies the problems. The fourth part is the core of this paper, which progressively analyzes those problems and proposes the solutions.The innovation of this thesis is that the author relate the situation of SMEs, especially actual cases in Luzhou city of Sichuan province which with financial mechanism and the government. The systematic strategy research in financing is the conclusion of this paper. The author hopes that the research findings will solve these issues with some new ideas and approaches and provide a useful reference.