Research On Financing Problems Of Small And Medium-sized Enterprises (SEMs)

Way of heaven, using the superfluous to make up for the inadequate. But people do the things in the opposite way. This reflects the financing situation of small and mediun-sized enterprises in our country. SMEs are the important impetus to national economic development. But they have not received enough attention, and a lot of difficulties are met in the process of operation.In our country, the present situation is as follows. On the one hand, financial institutions are compete for large corporate clients, on the other hand, the masses of SMEs have large financing gap. SMEs financing difficulty is not unique in China, countries around the world are facing with this problem. The social from all walks of life are trying to solve this predicament by putting forward different solutions, it still needs efforts for a long time.Chinese researchers started to do tne enterprise financing theory research since the1950s but the development of SMEs financial support system was not promoted to a certain height untill the late1990s. In2008,the financial crisis spread all over the world. Although there was no serious influence on the stability of financial system in our country, but it also brought a lot of damage to the real economy, the negative impact of SMEs are obvious.The happening of the crisis made the importance of SMEs were realized by our society. The social from all walks of life tried more harder to solve the bottleneck problem of SMEs financing predicament and put it on the urgent agenda.According to our country’s authority definition of SMEs,99%enterprises in our country are belong to small and medium-sized enterprises. They provide75%employment opportunities to the urban population, and make a contribution to the national GDP and tax revenue more than60%and50%respectively. After the financial crisis, along with our country economic situation improved markedly, the credit need of real economy is increasing, but inflation pressure makes Chinese financial institutions began to tighten credit resources in2011. SMEs, as a natural disadvantage on the credit markets, its financing difficulty becomes more serious.SMEs financing predicament is widely recognized, and its related research also abound. The researchers tried to find out the reasons for this problem. This article analyzes the characteristics of SMEs financing situation in China based on the actual status of SMEs. Regional distribution of SMEs in our country is imbalance, and enterprise development are different among regions. The market threshold is low for SMEs, and their scale is small. Although they can response to market changes flexibly, their ability to resist market risk is weak. SMEs in our country aren labor-intensive and capital-intensive industry. They pay less attention to innovation, and their products are lack of core competitiveness.One of the basic operations of banks is to assist the enterprise working capital. At present SMEs have trillions financing gap, why banks ignore such a big market? The important reason is the risk of lending to SMEs is sustained. According to statistics, SMEs non-performing loan ratio is much higher than bank’s related data. Capital requirement of SMEs is frequent, and their single amount is small. this brings a high cost to bank. China’s current banking system has not been set up credit system specifically for SMEs. Now guarantee mortgage system in our country is week. Some of SMEs have a bad credit record, this damages the credit image of the whole group. SMEs have insufficient mortgage-backed assets. At the same time, government is lack of guarantee agencies. Compared with the developed countries, China’s capital market development is far away from the perfect situation.Aiming at the problem of SMEs financing difficulties, scholars in our country do a lot of work, but because of lack of data, empirical research is relatively less. Therefore, this article selects84SMEs financial data of four consecutive years. The data is authentic and cover a wide industry. We hope find out the real factors affecting Chinese SMEs financing ability through the empirical analysis.The article is divided into six parts. The first part is the introduction. Introduced the research background and summarized domestic and foreign related research about SMEs financing predicament. The second part analysis our country SMEs present development situation. Special geographical features, economic development in our country determine the development of our SMEs presents its own characteristics. The third part carry on a brief overview of SMEs financing theory.This is the foundation of our analysis. The fourth part is an analysis of the present situation of SMEs financing in our country. The fifth part is the empirical research. Through empirical data analysis, we try to find out the actual influence factors of Chinese SMEs financing ability. The sixth try to analysis the solution of the financing predicament.we will combine factors affecting enterprise financing ability with the actual condition of China’s economic development, then do a more in-depth analysis. On this basis to improve the financing ability of corporate.In this paper, the empirical part adopts the descriptive statistics and panel models for listed84SMEs’financial data. In order to measure small and medium enterprises financing ability, we select the rate of assets and liabilities of enterprises on behalf of the company’s financial leverage. Because assets and liabilities force can more truly reflect an enterprise’s debt paying ability and financial status. Then according to the relevant reference and the author understanding, the influence factors of affecting SMEs financing ability are analyzed. We divide into two kinds. One is the exogenous factors, these include the size of SMEs, the certainty of SMEs, the growth of SMEs and the establishment of the fixed number of year. The other is endogenous factors, including operating capacity, the profitability, internal accumulation level and ability of resisting risk. After in-depth analysis of the above factors, we select the appropriate financial indicators as the variable to measure these factors, then according to the theory and experience to the regression result makes the corresponding hypothesis. Finally we compared expectations hypothesis with the results of the study and analysis of the empirical results.To.solve our SMEs financing predicament problem needs a long time effort. Especially in the situation of the high speed development of economic, the influence factors of SMEs financing ability is changing. Based on the latest data of relevant empirical analysis, we try to discuss the general laws of SMEs financing and the reason of this difficulties. Based on our conclusion, we analysis the countermeasures of SMEs financing predicament.