Research On Small And Micro Enterprises (Smes)Financing Business Expansion In Commercial Banks In The Guangxi Market

Along with the development of the market economy, small and micro enterprises (SME), act as an important element in promotion of national economy, diversification of the economy body, maintenance of social stability and remission of the employment pressure. The healthy development of the SMEs contributes significantly to the sustainable development of the market economy in China. However, the paradox between the huge demand of financing and the difficulties in SMEs, which is the result of the characteristics of the SMEs and the risk preferences of the commercial banks, is the greatest bottleneck restriction in the development of SMEs.The issue of SMEs financing in the commercial banks is the hotspot in the financing research. Theoretically, driven by the ideas of scope economy, market segmentation and comparative advantage, commercial banks have noticed the field of SMEs financing and started to provide related services. We need to be aware that those research findings and advanced experiences in expanding the SMEs financing business in commercial banks are mostly rooted in foreign economic environment, which bears not much comparability to the emerging SMEs financing in China. These findings and experience can not be indiscriminately imitated in China.The methodologies of comparative analysis and case analysis are adopted in this thesis. Based on the report of SMEs financing business services in Guangxi, conducted by XX bank, the author will dig in and reveal the obstacles in conducting the SMEs financing, including researches on commercial banks per se, the internal environments of SMEs and financial market environment. Conclusions and suggestions on improving the SMEs financing in commercial banks will be proposed by combining the related theory and researches on existing issues, causes and countermeasures. These conclusions and suggestions could be references in the expansion of SMEs financing services in commercial banks, especially in Guangxi, the development of SMEs, and the establishment of related laws and regulations.