Research On The Financing Difficulties Of Small And Medium - Sized Enterprises In China And The Countermeasures

It is necessary to learn from the successful experiences of the developed countries, and also needed to consider the current domestic economic situation to solve the problem of SME financing efficiently. In order to create and foster a healthy SME financing market, the financial system needs to cultivate three pillars:loans, credit guarantees and capital markets. The establishment of a SME focusing specialized government department and a solid legal framework for SMEs is the most basic premise, especially for the regions that have less developed financial markets. In the market of SME financing, the government-based institutions should always play a key role. This thesis mainly uses comparative analysis to do full analysis of the successful foreign SME financing supporting cases, summarizes the reason of the success, do the comparison with the current domestic SME financing situation and key problems, and then put forward the probable resolutions to the problem of extremely insufficient SME financing in China. Moreover, the paper also quotes the case of Zhejiang Province, one of the areas that have most SMEs in China, to further discuss the possible solutions to SME financing problem in Zhengjiang Province. Currently in China, it is very necessary for the government to establish a national wide policy credit guarantee institution to provide specialized financing guarantee services to SMEs. Meanwhile, the policy guarantee institution can drive the other market participants to provide effective financial supports to SMEs.