Research On Financing For SMEs After The Financial Crisis

Since the revolution and openness, China is growing up rapidly, and becoming a strong economic country. In the past20years, small and medium-size enterprises occupied99%of total number of Chinese enterprises, and were playing an increasing important role in economic growth, technical innovation, upgrade of industries, and trade. However, small and medium-size enterprise are experiencing intense financing environment nowadays in China.Small and medium-size enterprises are mostly assembled and contribute significant economic as well as social efforts in Guangdong, which is one of the most important provinces regarding to the economic level. Nevertheless, in the progress of development, small and medium-size enterprises still face a number of obstacles, such as low level of technologies, severe businesses and management environments, and insufficient operation fund and so on. Financing problem of small and medium-size enterprises in Guangdong is also the biggest difficulty among these obstacles. Especially, International financial crisis in2008shocked economies in Guangdong, which is the biggest exporting province in China, and therefore lead to a mass bankruptcies of small and medium-size enterprises because of the fracture of capital chains. What is more, under the tight monetary policy and the background of condensed credit scale since2011, the operational pressure of small and medium-size enterprises has significantly strengthened. The running costs like wages, price of raw material, RMB exchange rate, loan interest, and rents, were all increased. Hence, it reduced price advantage and profits of the enterprises. Under this situation, financing abilities of small and medium-size enterprises were further weakened.Due to the intensive economic situation and transformation of economic structure, small and medium-size enterprises in Guangdong have even greater demand on funds than before. The research about financing issues would play a fundamental guiding significance. Government and banks would have clearer visual when concerning financing difficulties of small and medium-size enterprises, and provide effective solutions. In order to improve efficiencies of financing and accelerate the upgrade and adjustment of industry structure.The article analyzes the reasons causing financing difficulties, through questionnaire research and field visit of local small and medium-size enterprises. It also from the perspectives of enterprises themselves, financing institution, and government. Financing experience of foreign small and medium-size enterprises is also referred, so that constructive suggestions are proposed to help improve financing environment and relieve operational pressure of small and medium-size enterprises.