Research On The Financing Problems Of SMEs And Standardization Of Private Finance

Through the ages, SMEs(small micro enterprises) play very important role in China’s economicdevelopment, but it doesn’t get the corresponding policy and financial support. The problem “two Excessesand two Dilemmas”-excessive SMEs with financing dilemmas and excessive private capitals withmonitoring dilemmas-exist in China for a long time and has becoming more deteriorated. Although inrecent years, especially since2011, government, banks and other parties increase attention and support toSMEs, but the measures have little effect in last3years and the problems of SMES have not beenfundamentally relieved, and the capital supplied by banks and other formal channels still can’t meet thedemand of SMEs; On the other hand, the private finance has played an important role with its uniqueadvantages, but it is in an awkward position with its illegal form, therefore, it is very urgent for thestandardization of private finance, and the standardized development of private finance cannot separatedfrom the joint with SMEs. Thus, it is of important theoretical and practical significance to study how tomove private capital to serve SMEs’ financing, exploring the way of informal finance’s standardization,optimizing the financial environment, standardizing the financial order, establishing and improving afinancial system and operational mechanism to meet the needs of SMEs. Based on the above background,this thesis entitles “Research on the financing problems of SMEs and standardization of private finance ",to analyze the existing constraints in financial system for SMEs financing, and the effect of private financefor SMEs’ financing, and through learning international experience to explore the most optimal model forprivate financial to promote SMEs financing.At present scholars generally studied the financing problems of SMEs and private finance parted, andlack of researches combine the both, and this article will unite SMEs financing difficulties with privatefinance’s standardization, and analyze the possibility of private finance as an important way to solveChina’s SMEs financing problems. This paper is conducted in six chapters, and will be introduced in threelevels. The first level is first chapter and second chapter, raise up the problem, it include the wholeintroduction and the current problems of Chinese SME financing. The second level include third chapterthree and chapter four, analyze the problem, analyzes the current development and the role of private finance and introduces experience of foreign countries, finally, combined China’s national conditions, putforwards the optimal development path of Chinese private finance. The third level include five chapter andlast chapter, chapter five lists several suggestions to solve the problems of SMEs’ problems and developprivate finance. And last chapter is a summary of the article.