The Study On Financing Problems Of SEMs In Transition Period In China

SMEs are in an important strategic position in the national economy when talking about their relationship to the successful transformation of economic development model and adjustment of economic structure. With the deepening of the reform of market economy and the increasing liberalization of market access threshold, the number of SMEs is growing and their status is also rising. However, from the perspective of a single enterprise strength, the asset’s scale and other self-management problems of small and medium enterprises are at a disadvantage, among which one of the most important questions is the financing problem. The seriousness of financing problem of small and medium enterprises have become the entire community consensus. The reasons are diverse, both relating to SMEs own problems and also associating with China’s economic policy in institutional transition period.Firstly, the Study combed SME financing related theories which provides a theoretical basis of text analysis and analyzes SME financing problems encountered and possible reasons for the existence from a theoretical perspective; followed by quantitative analysis of the funding needs gap of SMEs, reflecting the status of SME financing; followed by a comprehensive exposition of the general SME financing channels and combined with China’s actual situation, pointing out that alternative financing channels for SMEs;The innovation of this paper lies in further classified by size and industry of SMEs and then empirically analyses the different effect of the different sources of funding, finding that real capital in the medium-sized industrial sector has a significant positive to the industrial added value, while the impact of current liabilities and long-term debt to industrial added value is not significant;Finally, the study tries to discover the reasons for SME financing difficulty and to pursue methods to ease financing problems from the perspectives of government, financial system and SMEs themselves. In particular, small and medium enterprises should improve their credit standing and management conditions; banks and other financial institutions, on the one hand, abide by the quality of loans, on the other hand, should gradually improve the regulatory system such that gradually opens up policy to the SME lending resources; the government should actively and steadily push forward interest rate marketization reform of the financial system.