Research On Financing Predicament And Financial Support Of The Small And Medium-Sized Enterprises

The issue of Small and Medium-size Enterprises(SEMs) is a global problem, SEMs has made important contribute to the national economy. In Jiangsu Province, the importance of SMEs is even more prominent. SMEs in Jiangsu Province, play an important role on driving GDP, promoting social and economic development, promoting employment and other aspects. However, financial support that SMEs obtains is extremely disproportionate to its status in the national economy.Currently, the most important bottleneck factor that affecting development of SMEs is the financing channels which is a constraint to the growth of SMEs in the economy. Precisely because of this, the financing issue of SMEs in China has aroused widely attention by Chinese and foreign scholars. In particular, since the second half of2008, the global financial crisis has bring deep harm to the development of real economic, SMEs faces unprecedented challenges and the finacing issue is more prominent than ever. Under the influence of the slow-growth on international economic situation and the domestic macro-control of structural adjustment, a series number of SEMs face the strand breaks and other financial difficulties. Owing to the economic status of SMEs in China is constantly growing, establish and improve a financial support system for SMEs has become a social consensus. How to establishing effective financial support system and eliminating financing difficulties, is an important issue in promoting Chinese market process.The limitations of SMEs, single financing channels, asymmetric information, and the defective inancial service system provided by government, has limited the further development of SEMs. This paper analyzed the current situation of SEMs in Die Shiqiao textile city and analyzed the deep reason of finacing difficulties. The author visit27SEMs in Die Shiqiao textile city, and analyzed the survey results. Results show that there are three aspects which bring to financing difficulties, including the enterprise, the bank and macroscopic view. Asymmetric information, low credit capacity, and the low level of financial management are the main problem in SEMs; Secondly, banks are far from being commercially, the proportion of profit and credit is difficult to covering credit risk, discrimination still exists; thirdly, not enough institutions put up for SMEs, credit guarantee system is not perfect, laws and regulations have to be improved.