Jinxiang County Analysis Of Small And Medium-sized Enterprises Financing Delemma

Along with the rapid development of the socialist market-based economy in our country, the intra-county medium and small-sized enterprises are playing an irreplaceable role in accelerating the economic development, increasing job opportunities, boosting rural incomes, narrowing down the difference between town and countryside and forming rational and orderly economic structure. However, in the process of the rapid growth of intra-county economy and intra-county enterprises, the access to financing is always the shackles on the necks of the intra-county medium and small-sized enterprises. Small and medium enterprise has its own defects, and the information asymmetry in the credit market forces the commercial banks to execute credit ration, which generates the fundamental reasons for the predicaments of credit loans and financing for medium and small-sized enterprises. The limitation of access to financing for medium and small-sized enterprises lays restraints on the development and growth of these enterprises, and becomes the bottle-neck of the development and maturity of the intra-county economy. With the examples in Jinxiang County, a less-developed county in Ji’ning District which locates in south-west Shandong Province, and using information asymmetry theory, credit ration theory and quantitative analysis, the thesis addresses to the status-quo and existing problems of financing of the private medium and small-sized enterprises in Jinxiang County, which are in the period of social transformation and in the initial stage of an enterprise, and analyzes, in a deep-going way, the financing problems of these enterprises, explores the internal and external reasons for their financing predicament. Finally, the thesis closely associates with the specialties of the financial requirements in Jinxiang County, analyzes from the views of the medium and small-sized enterprises themselves, the government and the banks, solves the problems by government initiating, building up modern enterprise system and developing intermediary service agency, and, with the Jinxiang County Rural Credit Cooperatives as an example, actively explores and studies the solutions for financing predicament of private enterprises. With the common endeavor and mutual supporting of government, enterprises and bank, with the innovation of system, it is extremely important for the medium and small-sized enterprises in Jinxiang County to break through the bottle-neck of financing, realize expansion, conglomeration and internationalization. As an example for reference, the thesis explores not only how enterprises strengthen themselves but also the positive roles of external factors played in the financing of intra-county medium and small-sized enterprises.