Study On The Financing Difficulties Of Small And Medium Enterprise In China

Since30years of reform and opening up, the rapid development of China small-and-medium-sized enterprises (SMEs) has become the most dynamic force in national economic development, SMEs play an irreplaceable role in increasing employment, revitalizing the national economy. But for a long time, due to a variety of imbalances in the economic and social development, as well as asymmetry in SMEs and financial institutions information, support accesses to financial institutions for the SMEs is not commensurate to their own contribution to society. Financing of SMEs in China has restricted the development of universal SMEs, which becomes the bottleneck restricting the development of SMEs. What is the reason for pursuing financing on earth? Answers can not be the most comprehensive and objective just from the one cause of difficulties in financing SMEs. We have to collect many aspects, through the survey, statistics, studies, the successful experience at home and abroad of a wide range of SMEs and financial institutions, to use summary financial knowledge to find the problem, to bold ideas and test innovative financing policy, so as find a satisfactory answer. Based on research on the current investigation, comparing the reasons for SME financing, financial institutions in their own efforts and product promotion, this article bold promoted the innovative means of financing the proposed new method, rationally analyzed perspective the underlying causes. From the national policy, the bank’s own organizational system, the loan business decision-makers of non-rational behavior, asymmetric information between SMEs and financial institutions and other financing, and designed for SMEs with financial institutions in financing under asymmetric information model. To reveal the status of financing for SMEs more precisely and intuitively, and to in-depth analysis of the causes of the financing difficulties of SMEs, the author combined his own, the department’s work experience, selected part of the SMEs and financial institutions as the sample survey in Weifang Binhai Economic Development Zone Development Zone, and discussed with business owners and bank managers on-site. To fully understand the majority of the real financing needs of SMEs, and to provide better financing services for enterprises, questionnaire were specially designed, and the empirical analysis of the financing difficulties of SMEs in the zone were carried on. This overall structure is as follows:The first part is Introduction, which described the significance of thesis topic and research methods. The second part is a theoretical overview of the basic theory and finance theory based on SME financing. The third part, not only made careful survey, and research on status of SME financing of representatives including Shenzhen, Wenzhou City, Tangshan City, Shandong Province, but also comprehensively analyzed on the current financing situation of SMEs, the measures taken by domestic banks to meet the SME financing as well as the two financing relationship. The forth part, based on the actual survey on the current situation of SME financing in Weifang Binhai Economic and Technological Development Zone, through questionnaires, site visits, an empirical analysis on the problem of the financing difficulties of SMEs in the Development Zone was made. Part Six summarized and proposed solutions to SME financing policy proposals, which not only means that the government boldly learned from foreign experience, but also expedited the development and implementation of the various support measures for SME financing, the establishment of SME credit guarantee system to find ways to ease the financing of SMEs.