Research On SMEs’ Financing Dilemma

Till recent years, the importance of small and medium enterprises (SMEs) has been well understood. What is contrast is that SMEs were faced with serious financing issues. The former researches have been implemented from the view of former finance and financial ecology, this paper tries to make some difference from informer finance perspective. It has great theoretical and practical significance to do deep research on finance issue of SMEs from the perspective of informer finance. By analyzing the essence of financial dilemma, we could understand the existing problems and give some proper advices.This paper mainly applies normative and empirical analysis, qualitative and quantitative analysis together to implement the research. After deep analysis on the financing conditions of SMEs, the reason of financing dilemma and the development of informer finance, the essay thinks that it is poorly qualified conditions of SMEs, imperfection of financial system and information asymmetry that makes financing dilemma. Informer finance which is more suitable for the financing of SMEs, witnessed a rapid development and a variety of forms recent years, effectively alleviating the problem of high transaction costs caused by asymmetric information for SME financing. Then, empirical analysis proves that informer finance contributes the increase of gross income of SMEs, there is long term co-integration relationship between the two. Finally we discuss the problems existing in the process of informer finance alleviating the financing plight of SMEs. Such issues as unclear legal status, the absence of regulation and restriction in financial innovation are obvious. On the base of experience from Germany, Japan and United States of America, we come up with the following initiatives:improving the environment of informer finance, enhance the strength of SMEs and build multi-level capital market.