Our Country Small And Medium-sized Enterprise Financing Present Situation And The Countermeasures

Money is the driving force for the development of the enterprise. Enterprisedevelopment is inseparable from the support of capital. The shortage of capital is commonproblems, in the process of the development of small and medium-sized enterprises, invarious countries and various areas. Knight McMillan, as a member of British financialindustry committee, submitted a famous report to the government. In that report, he putforward that in the process of development of small and medium-sized enterprises, whereexist a big Gap between the requirement and supply. Since then, many governments mademany attempt, have gained a lot of valuable experience. But our country has the specialconditions. The solution to our country’s small and medium-sized enterprise financingcannot copy other countries model, but also can’t refuse to advanced experience. The rightway is based on national conditions, and the advanced experience of other countries forreference, explore suitable financing strategy.A margin for national conditions of the country is that bank loans still is in a dominantposition. Large state-owned commercial banks still is the main financing medium, but atthe same time small and medium sized financial institutions have got a certaindevelopment. And China has preliminary build diversified capital market system. So theoverall strategy of small and medium-sized enterprise financing should be: in future, atquite some time, we will still rely mainly on the bank, especially small and medium sizedfinancial institutions. At the same time, we should expand the proportion of directfinancing actively. By the way, small and medium-sized enterprises should choose properfinancing way, which based on its own industry characteristics and different developmentphase.