SME Financing Difficulties And Countermeasures

Since the reform and open policy, our country’s small and medium-sized enterprises (SMEs) have developed rapidly. SMEs play an increasingly important role in promoting the scientific and technological development, employment protection, social stability and to enlarge the exports. The SMEs have become the foothold of our economic development and stabilizer of social development. However, many obstacles rooted in the institutional mechanisms have brought a lot of inconvenience for the development of SMEs. As the financing difficulties have become an important factor to restrict the development of SMEs, it would be of great significance to analyse the cause of financing difficulties of SMEs and discuss the solution to the problem.This thesis uses the method of literature research, interview and data analysis. Through widely data collection, in-depth investigation and study, the writer discusses the theme thoroughly, surrounding the topic of the financing difficulties of SMEs and countermeasure research. According to the need, first of all, this thesis introduces the research background and significance, analyses domestic and foreign present research and defines the related concepts, including the definition standards of SMEs, the methods and channels of SMEs financing. Then the thesis analyses the financing difficulties of SMEs in theory from the three aspects of credit rationing, scale matching and own defects. It is discovered that the SMEs are facing multi-dimensional financing difficulties. Through a detailed analysis of the SMEs financing difficulties, we can conclude three aspects of reason:the internal causes of SMEs; the defects of the indirect financial system and the lack of government functions. Finally, based on the analysis reasons of the financing difficulties, some effective countermeasures and suggestions to solve financing difficulties of SMEs are put forward.