The Research Of Small And Medium-sized Enterprises’ Financing Guarantee Of Xiamen City

Small and medium-sized enterprises (SMEs) are in an important position in acountry and region’s economic development, which are the main force of socialdevelopment and the dominant status in the rural economy. Since China’s reform andopening up, SMEs’ flexible mechanisms are driving the development of marketeconomy and contributing to the social stability. However, for a long time, financingdifficulty, in other words, nowhere loaning is one of the main problems limiting theirown development. Although, there are bank loans, equity financing, bill discountfinancing, credit financing guarantee as well as borrowing (such as pawn, privatelending) and other methods that can upturn their economy state, financing difficulty isstill an outstanding problem. As one of the core cities of economy development inthe whole country after1978, Xiamen cannot develop without SMEs. It is known that60thousands SMEs (covering99%of the total) create Xiamen GDP’s80%-90%every year. As the backbone of Xiamen’s economic development, they have becomean important and irreplaceable role to push economic growth, create social wealth,promote technology innovation, rich tax source, provide work opportunity and build aharmonious stable social environment. But most of SMEs still face financingproblems, mainly for their high bank’s financing threshold, insufficientstrength, folk financial environment, high cost of chaos, etc. In recentyears, according to its market environment, government departments andsome financial institutions have introduced a series of policies to increasesupport and create good financing environment for Xiamen’s needs ofeconomic development. However, there are too many limits for SMEs toget bank financing. At the same time, with tainted glasses, banks set ahigher entry threshold or even give a refusal to financing guaranteeinstitutions, especially to the private ones, all of which make them face asevere crisis. On the one hand, as an intermediary, financing guaranteeinstitutions exist the phenomenon of operation standard unbalanced andrisk and return asymmetry during the operating process; on the other hand,many financing guarantee enterprises do not do the things what theyshould do but to engage in private lending to earn high profits. Thus, Xiamen’s SMEs still need to improve. In order to discuss and studySMEs’ financing problems and the status and development problems offinancing guarantee institutions, this paper analyzes as well as introducesthe financing environment of Xiamen’ SMEs firstly. Secondly, it presentsthe financing guarantee institutions’ effective work and their problemsand deficiency during the process of SMEs financing. It comes up withsome suggestions from the view of risk control and operation standard forthose financing guarantee institutions. Finally, it gives advises to improvethe financing environment and financing efficiency of Xiamen’s SMES,and to play full use of financing guarantee institutions in helping SMEsdevelopment and promoting Xiamen’s economic development, whichprovides a reference on economic judgment and decision making for thegovernment, investors, enterprises and other main bodies of socialeconomy.