Study On Small And Medium-sized Enterprise Financing In Liaoning Province

Small and medium enterprises’financing issue has always been concerned. SMEs in Liaoning Province play the key role of supporting the rapid economic development. Now the number of SMEs in Liaoning Province has reached1,729,000accounting for99.9%of the total number of enterprises in the province.10,490,000people are employed in SMEs, to create the ultimate value of products and services to the province’s total economic output accounts for about60%, taxes amounted to about50%of the province’s total tax revenue, nearly80%of the jobs. SMEs play an increasingly prominent role to ensure economic growth, increase employment opportunities, support local finance, promote scientific and technological innovation. SMEs in Liaoning Province are growing at a faster rate of sustainable development, but are still relatively backward with the good level of development of SMEs in some provinces.Since the economic crisis in2008, difficulties of production and operation in SMEs increased, the loss was extended, cut-off and collapse phenomenon increased. The decline in production and operation difficulties and benefits led to the problem of financing SME as it exists to become more prominent. Financing has become the most important factor of restricting the development of SMEs.By combing the related literatures of SMEs financing, I found that there was more studies on SMEs financing about overall studies than regional SMEs financing problems, especially for Liaoning Province in the northeast region. With the development of informal finance in the southern region, as well as the emergence of the recent new policy of SMEs financing private debt this financing approach, there are a lot of new situations and new changes about SMEs financing. Compared to SMEs financing in developed areas, there are still many difficulties in Liaoning Province, and there are many aspects need to learn.Firstly the literature combing the relevant theories of SMEs financing, introduces the article’s background and research contents to pave the way for the later specific studies about SMEs financing in Liaoning Province. Secondly, the article makes an overview of the concepts and theories about SMEs financing, according to the new SMEs criteria for the classification introduced last year by the Ministry of Industry, the Ministry of Finance, the National Bureau of Statistics and the Development and Reform Commission, and makes the distinguish of SMEs financing methods based on the different industries and different stages of development. Moreover, it introduces classical theories on SMEs financing to explain the reasons to make the financing of SMEs for later analysis. The third part is the analysis of the current situation and problems of SME financing in Liaoning Province. The reasons of SMEs financing difficulties are not only SMEs for its own reasons, but also banks and government reasons. Analysis of the financing needs of SMEs in Liaoning Province, according to the characteristics and financing status of the financing of SMEs in Liaoning Province, and then analyzes the causes of the financing of SMEs from the SMEs themselves, banks, government, and other aspects. The fourth part proposes some countermeasures and suggestions about Liaoning Province SMEs financing basing on the foregoing analysis. This paper argues that solving the financing problem of SMEs in Liaoning Province, should improve the quality of SMEs themselves, make innovative services of financial institutions, including government efforts to broaden SMEs financing channels, and many other ways.Overall, entire SMEs generally face the problem of the difficult of SMEs financing. It will be a long-term and complex systems engineering to solve the SMEs financing difficulties. We should solve the problem basing on the characteristics of SMEs in Liaoning Province, and combine with the environmental characteristics, and learn from the advanced experience both at home and abroad, and in-depth analysis, so that a set of scientific and practical system can be formed. I hope that this discussion is more abundant to Chinese SMEs financing theory, and can provide a useful way to resolve the SMEs financing problems in practice.