SMEs Financing And Governments Support Mechanism

The difficult situation of financing has been universally recognized as the most important one of the factors that restrains the development of small and medium-sized enterprises, and has already become a world-wide challenge that expleses economic theory community, business community and the relevant government departments in the world. The role and importance of SMEs in the economy development have already been recognized and approved by many mainland scholars, and have been one of the government’s particular attention in China. SMEs have already become an important force in promoting the sustainable economic growth and creating employment opportunities. A fundamental solution of financing difficulty of SMEs is not only hampering their own development, but also a major subject about the sustainable and healthy development of national economy. This paper attempts to find the relationship of government support mechanisms between solutions of SME financing difficulties through theoretical analysis and case studies.At present, most of the researches on micro-enterprises are included in the researches on SME finance. This thesis seeks to get away from the conventional model on SME study, strip micro-enterprise from SME and discuss it separately. After discussion on the definition of SEM, the driver of the problems on SEM financing, the analysis of the current condition of SEMs financing of Guang Zhou, the comparison of the international ways to solve the problem, the thesis seeks to discover new ways to solve the SEMs finance problems from the aspects of, financing system, security system and financial instrument.After expounding SMEs theory, this paper analyze the present situation and problems of SME financing in China, and to find the reason for the existence of SME financing difficulties, in which highlight the negative effect of missing government support mechanisms. We are take a point that the government make an best important pore in this problem. The government started from the classification of small and medium enterprises through the development of a more detailed standards, the Government should support the target objects selected, and to encounter, to implement government functions effectively, at the same time do not interfere with the market economic order.