A Study On Financial Support For High-tech SMEs In China

With the development of the world’s economics, high-tech SMEs (small and medium enterprises) play a more and more important role in economic growth. To the different countries of the world, high-tech SMEs has became one of the most important forces to the energy of an economy.In China, the presence of systematic limitation makes Macmillan Gap more serious. The lag in industrialization of high-tech product is caused by the gap in financial support to high-tech venture, so that some elements such as technology, capital, management and marketing cannot compose a whole chain of venture creation process. In a word, there is obstacle in conduction of financial support to high-tech venture. However, high-tech SMEs are confronting of financial constrain. In china, the presence of systematic limitation makes financial constrain more serious. It is meaningful to perfect the financial system for our high-tech SMEs.In China, on the one hand, the dominant banks in financial system and the dominant stated-owned banks in banking system predominate the allocation of resources of the whole economy, on the other hand capital market develop with disproportion and singleness, which is the characteristic of financial system. So, the indirect financial system dominated by banks and present capital market have no effect on financial support to high-tech SMEs.Based on the international experience, the text gives the polices to perfect the financial system of our country’s high-tech SMEs. First, government should invest more funds to high-tech SMEs. Second, perfect the indirect financial system. Third, build a capital market with many arrangements. Fourth, VCs should highly support high-tech SMEs. Fifth, make the folk finance more criterions. The rest of paper is structured as follows.In chapter one, we demonstrated the background and significance of this paper, summarized the related literature and point out their shortcomings. At last, we presented framework and methods of the paper.In chapter two, we introduce the current development of the high-tech SMEs in China and the financial constrain high-tech SMEs are confronting. First, we redefined the high-tech SMEs, and then introduced life period theory of enterprise and optimum financing order theory; think that enterprise has different financing demand in the difference financing stage.In chapter three, we accurately described the current situation and revealed restrictive factors of China’s finance system supporting for high-tech SMEs, which provides guidance that how China’s finance system support high-tech SMEs.In chapter four, compare the world financing support of high-tech SMEs. Research and introduced the successful financial support experience of America, Japan England, and Israel. This experience has certain reference when perfecting and establishing financial support system of our country.In chapter five, through deductive reasoning and countermeasure research, we presented some suggestions about optimizing China’s finance system supporting for high-tech SMEs.