An Empirical Study On The Financing Characteristics And Dilemma Of Small And Medium - Sized Enterprises

Since reform and open to the world, China’s enterprises have changed dramatically in number, size and ownership. The SMEs take the dominant position in quantity, and is playing an increasingly important role in the economy. However, as financial market development and financial reform have lagged behind, the flow of financial resources is inconsistent with the effective demand of the real economy in enterprises’ creation, management and development process. This contradiction stands out in the case of the SMEs, which has become a bottleneck restricting the development of the SMEs.There is no deny that financing of the SMEs in China is difficult. With the violent impact of the international financial crisis and a marked decline in domestic economic growth, this contradiction becomes more prominent. Shanghai has a large number of SMEs, involving various industries, should be an epitome of the SMEs in China. As the country’s financial center, Shanghai has abundant financial resources and a more complete financial market system. However, the advantages in financial resources and system do not turn into a powerful boost for financing of the SMEs in Shanghai, which is still plagued by the problem of financing.We take the SMEs in Shanghai as the object of study, through the collection and sorting of relevant statistical data, reflect the financing status of the SMEs in Shanghai, including credit financing, direct financing, financing environment and other aspects of the financing system. We try to study the endogenous and exogenous factors which lead to the financing difficulty for the SMEs in Shanghai. On the basis of the empirical analysis, we propose several proposals on how to improve the financing mechanism for the SMEs from the three aspects of the SMEs themselves, financial institutions and government policies.