Analysis On Financing Difficulties Of Small And Medium - Sized Enterprises And Countermeasures

The growing small and medium sized enterprises (SMEs), which are the most dynamic and promising enterprises among all SMEs, have played an important role in our country’s economic transition and promotion of employment. However, the financing difficulty restricting their development has not been well solved. In recent years, there are quite many research literatures on SMEs financing problems, but there is little empirical study on growing SMEs financing issues. Therefore, study on the growing SMEs’financing predicament including their current situations, reasons and countermeasures has important theoretical and practical value.From the perspective of financing difficulties of the growing SMEs, the paper uses normative, empirical and case analysis, by selecting280enterprises which gained continued profit growth in2008-2012listed on SME and GEM board and analyzing their commonness, the nature of growing SMEs are deduced. Then from theoretical aspect, through systematic analysis method, the causes of the financing situation and corresponding countermeasures are analyzed. On this basis,457growing SMEs of Liaoning Province which fulfill the characteristics of the growing SMEs are selected, through empirical analysis by multiple factor regression model, the reasons behind the financing difficulty are analyzed. Then through an actual case, the financing predicament and successful solution are elucidated. Finally, the paper points out that through an innovative financing mode-combination of equity investment and commercial loans, the growing SMEs’financing predicament can be solved to a great extent.There are six chapters in this paper.Chapter One:Introduction. Indicating the background and significance of this paper, current research status at home and abroad, the framework of this paper, main analysis methods and innovative points.Chapter Two:The paper first defines the concept of the growing SMEs. Then uses the SME and GEM board listed companies data, summarized the essential feature of the growing SMEs which provides the basis for selecting data in later empirical analysis.Chapter Three:Theoretically analyze of the various ways of financing including financial leasing, small and medium-sized enterprises private debt, the new Sanban and private equity financing. Then analyze the reason behind its financing difficulties and corresponding countermeasures.Chapter Four:Empirical analysis. By selecting457growing manufacturing SMEs of Liaoning Province which fulfill the characteristics of growth, through multiple factor regression model, the influence factors behind the financing difficulty and the influence level of each factor are analyzed. Through the study, the reasons of the financing predicament are that lack equity investment, little qualified guaranty and small scale of the enterprises which verify the theoretical result.Chapter Five:Through an actual case of the growing SMEs financing and successful financing method, the paper points out that through an innovative financing mode-combination of equity investment and commercial loans, the growing SMEs’financing predicament can be solved to a great extent.Chapter Six:Conclusions and suggestions. Give summary of the paper and suggestions on growing SMEs, the paper points out the growing SMEs shall seek more private equity combined with financial leasing, commercial loans and guaranty institutions for financing. And with the help of the government and improvement of the financial institutions, the growing SMEs’financing predicament can be largely solved.