Private Finance To Solve The Financing Difficulties Of SMEs

After our country entered the market economy, the small and medium-sizedenterprise to the eyepiece trend of rapid growth, the proportion of the number ofSMEs in China’s domestic enterprises on a constant increase, today has reached morethan95%, the contribution to national economy relative to the other is not only thequantity increase, there is a quality leap, the business tax, the income scale, the scaleof development, capital amount of freedom compared with the large enterprises arealso much higher than the. The present data is20%,22%,21%more than the largestate-owned enterprises, but also in China’s Shenzhen market exchange also has aboutmore than4000listed in the SME board, especially in the field of circulation, theproportion accounted for92%. And this data also grow with each passing day, with alarge number of employment opportunities for China’s surplus population,unemployment has fallen to70%, contribution. With China’s accession to the worldtrade organization, the foreign export opportunities greatly strengthened, small andmedium enterprises accounted for about61%. Rapid development of China’seconomy has played an important role. But the small and medium-sized enterprisedue to their own conditions. It is difficult to obtain substantial financial support fromformal financial channels, the lack of funds has become the development of small andmedium-sized enterprises pain.China’s large state-owned commercial banks management system, theexamination and approval of a loan need make checks, with complicated operationprocedures, trying to get loan from the bank is very difficult. Coupled with the smalland medium-sized enterprise development time is not too long, scale is not large, it isdifficult to provide a guaranty bank need sin economics, it displays the contradictionof supply and demand, the demand side is badly in need of a large amount of money,and the supply side is not willing to give funds to the demand side. How to solve thisproblem has become the problem of priority among priorities, emerge as the times require the folk finance to fill this gap. A large number of private capital into the smalland medium-sized enterprise. Holding a large amount of money the institution topursue high profits, and not put money in the bank to earn meager interest, but byobtaining high interest to put money into the small and medium-sized enterprises,such folk financial institutions in this chain formed the capital supply side, thedevelopment of private finance for the development of small and medium-sized theenterprise has the reality is very important.The survey found, be idle in folk capital, resources are not reasonable use, theempirical analysis of small and medium-sized enterprises in the inflow of funds intothe scale has the reality is very important. If we can use well inside the folk financefunds, these funds flow to make an estimate and correct input to the small andmedium-sized enterprises in financing for small and medium-sized enterprises, smalland medium enterprises will develop for a long time because of cost reduction. Thispaper describes the current development of small and medium-sized enterprises of ourcountry and all its features, analyzes the causes of. The development of Chinese folkfinancial sector assessment, through the analysis of model structure and simplifiedpreliminary estimate of private capital for small and medium-sized, finallysummarized our country government, small and medium-sized enterprises should behow to plan, guide people to the correct financial inside of the funds for thedevelopment of small and medium-sized enterprises, for me with the development ofour national economy to a power of its own.