SMEs’ Difficult Financing Situation And Innovative Solutions

34years of reform and opening up, SMEs have become an important force in China’seconomic development. According to the2011National Statistical Yearbook of Statistics ofSMEs in China has accounted for99.17%of the total national enterprises, more andhighlights its importance in promoting economic growth, expansion of labor andemployment, promoting technological progress, creating social wealth has become animportant driving force of China’s market economy and economic growth.The development of small and medium-sized corporations need a strong financialsupport, but owing to their own self-developments and China’s economic system, andmany other reasons, China’s difficulties in financing for small and medium-sizedenterprises have become a widespread problem.The factors which influence the credit circulating funds of SMEs of our country are:SME’s poor credit level, the credit ration factor caused by unsymmetrical bankinginformation, unsymmetrical financial institution and economic structure under nationalfinancial monopoly condition, insufficient systems providing of the middle and smallfinancial institutions, and lacking supporting systems of government policy.The paper discusses the issue from two aspects. Firstly, we analyze the currentsituation of the difficulties of SMEs’ financing in China and the deep reasons which lead tothose difficulties. Secondly, developing corresponding countermeasures so as to establish asystematic, solid and operable financial supporting system...