A Study On Function Of The Government In Building Comprehensive Small And Medium Enterprises Financing Service System In Guangdong

Small and Medium Enterprise(short for SME) is the important force of China’s nationaleconomic and social development. Promoting the sound and fast development of SMEs, is theimportant foundation for maintaining the stable and fast development of the national economy,as well as a major strategic task concerning the people’s livelihood and social stability. NowSMEs registered at industrial and commercial administrative departments in China accountfor over99.5percent of all, and the total value of final products and services accounts forabout60percent of GDP. SMEs contribute to over50percent of tax revenues, and nearly70percent of imports and exports. SMEs supply for80percent of urban jobs, so SMEs havemade remarkable contributions to social stability and economic development. However, thefinancing problem has always restricted SMEs’ development. The causes of SMEs’ financingdifficulty include inner problems and also external restrictions. Small size, insufficiency ofeffective collaterals and low credit raking by their imperfection of financial systems; tightmacro-control situation and financial regulatory policies have made it worse; lacking of localSME financial institutions, no sound guarantee service system, lacking of innovation serviceand product for micro and small enterprises; the social service system is not perfect, financialsupport is weak and policy regulations for promoting SME financing have yet to be perfectedand implemented; SME credit ratings have failed to be advanced effectively and the socialcredit system has been relative stagnant. SMEs also play a vital role in some developedcountries and regions in the world. For example, the percentage of SMEs in the nationaleconomies of the USA, the UK and Japan has all exceeded90percent. They also encounteredthe problem of financing difficulty in the process of development, but governments ofEuropean and American countries have taken various support measures to remove thesebarriers and resolve the problem of SME financing. Through specific studies and analyses, wehave concluded that adjusting policies and having SMEs improve themselves will betteraddress the problem of SME financing, thus promoting the rapid and stable development ofthe national economy.Learning from domestic and foreign researches on SME financing, considering the actualSME development situation in Guangdong, this paper studies on the function of thegovernment in building comprehensive SME financing service system,from the aspects ofoptimizing the administrative environment, carrying out innovative financing services forSMEs, developing direct financing service system, promoting the construction of SMEcredit and guarantee system, improving SMEs crediting environment, and matching different ways of financing services for SMEs in different developing stages, etc. This paper suggeststhat the government should play an active role in policy guidance and resources allocation, toestablish incentive and restraint financing mechanisms for SMEs, to promote the sustainabledevelopment of SMEs.