A Study On Financing Obstacles Of SMEs In Binzhou City

SMES in Binzhou have become the main force of economic and social development, and played a very important role in promoting local development, promoting economic growth, solving the people’s livelihood employment, pulling folk investment, optimizing the economic structure, promoting technological reform, promoting market prosperity, maintaining social harmony and stability etc. However, the rapid development brings series of problems and difficulties. On the government level,the implementation of some national policy, the financial system is not sound, the government funding shortage. On the financial system level, most of the city’s financial system services are for large enterprises. There is no specific SMES financial institutions, and the financial system is imperfect. From the enterprise’s own point of view, most of the SMES are in the primary stage and small-scale. Most of them are based on traditional industries, so the ability of resisting risk is insufficient. In addition, the majority relied on family businesses. Management of backwardness, imperfect financial systems, untrue financial information, caused the loans more difficultly. Various reasons affect the health of SMES and sustainable development in a way. The author thinks, the financing difficulty of SMES in Binzhou in development is ascribed to the reason that lacks of Government’s support, imperfect financial system, irrational structure of corporate finance, information asymmetry problems lead SMES to significant risk in financing. High risk of SMES financing under the conditions of market economy further aggravates their financing risks.This paper attempts to research and analysis the domestic and international advanced finance theory and finance behaviors, based on further study current situation of the development and financing present situation of the SMES in Binzhou. From point to area, the paper attempts to explore the important factors which hinder SMES financing in our city. Drawing the advanced experiences of the United States and Shanghai, we can analysis of the causes of the difficulty in financing from the government policy level, financial support level and SMES own, in order to alleviate the financing difficulties of SMES, to expand the financing channels, improve the financing efficiency,and put forward the constructive suggestion.The level of government is mainly embodied in the policy, reducing tax reform to strengthen protection, increasing the fund support, strengthening service system construction and so on. Financial aspects are mainly embodied in the increase of construction financing channels, strengthening financial tools and means of innovation, and striving to build a mutually beneficial and win-win cooperation platform. Enterprise level is mainly embodied in the introduction of professionals in a way of the production-study-research, strengthening technical innovation, enhancing the competitiveness of their products, strengthening their own credit construction, expanding financing channels, and actively listing etc. Step by step and closely related,financing problem of SMES is the intrinsic factor. Financial development and reform lag is the external reasons. Make Countermeasures and suggestions be reified, make it more practical operability, to facilitate the development of SEMS.