Financing Difficulties Breakthrough Method And Beneficial Cycle Research Of Sms Enterprises In Zhejiang

The small-mid enterprises(SMEs)at present are the most dynamic part of the global economics. In China, the SMEs have play an increasingly important role in ensuring the development of national economy, easing the employment pressure, promoting technological innovation and perfecting the industry structure.However,the financing problem has become more and more serious in the development of SMEs,which is the bottle-neck for their further development. The financing problem is present in every country in the world to some extent. In western developed countries, the financing problem has been solved effectively owing to their sound legal system, perfect finance system and dynamic finance market. Now in its special stage of market economy in our country, the relevant rule of law is not perfect, the finance system not sound, the operation of finance market not standardized, the SMEs not self-sustained.Therefore,the financing is more difficult in our country than in other countries. So the study the financing and healthy development of the enterprise’s, have the important theoretical meaning and practical significance to the livelihood of the entire international.Based on the current financing state of SMEs in Zhejiang Province,this thesis would make a study of their current state and underlying reasons. After research, the reasons for SMEs’financing difficulties could be devided into two aspects in general:the influencing of the finacing needs and gain finacing.The influencing of finacing needs reasons include:the needs of business investment, the raw material price rise too quickly,the rising labor costs, the business marketing difficulties, the increasing interest expense,the appreciation of RMB, the heavy tax burden.etc. The reasons of gain the financing are divided into internal and external aspects.internal factors:the irrational industrial structure of the company;the low business credit and the low profitability.the lack of project packing capacity.the highest costs of the funds.external factors:the government’s require of bigger and stronger leads to a lack of funds;the incomolete financial system; the lack of direct financing channels;the imperfet invest system and so on.the writer consider that to solve this problem requires enterprises themselves, financial institutions, as the Government as well as direct financing channels Gongtong achieve good results, the financing difficulties would be solved gradually.The thesis used the financing of SMEs in zhejaing province as a case for study.Taking into account the characteristics of Zhejiang Province and the specific current state and difficulties of SMEs,the underlying reasons for financing difficulties were studied in detail,which include the SMEs’own reasons.the governmental reasons and othes. In China,the healthy development of SMEs would ensure the perfection of market economic mechanism.Based on the present national policy and the borrowing of foreign advanced experience in the solution of financing problems,the new ways conforming to our situation were created to solve the financing difficulties effectively. And then,the SMEs in China would survive the depression and the solid foundation for their development would be laid.Eventually,the SMEs would have a unique function in national economy and make great contribution to the economic development.