The Study Of China SMEs’ Financing Difficulties And Methods

Small and medium size enterprises’(SMEs) financing difficulties is always anissue for the development of enterprises. Though in recent years all society sectors areaware of the urgency and necessity of solving this problem and have made a lot ofefforts to improve the financing environment and some progress were also made. Butit is still difficult to meet the demand of development for SMEs. One uniqueexpression is the phenomenon of unreasonable allocation of financing sources---largeand medium size enterprises holding most of the resources, SMEs holding very littlebecause of its large numbers, and the reasons for which are various. From the aspectof enterprise itself, defects such as small scale, poor credit grade, irrationalmanagement structure and asymmetric information all leads to; from other side,financing guarantee system is not enough sound and credit discrimination in financingorganization exists; from the country level, perfect laws and regulations and financingorganization serve for SME are few and roles and responsibility of relatedgovernment sectors are unclear, all of the above results in the current difficulties ofSMEs financing.The thesis aims to analyze the current financing situation, combining the maincauses of the financing difficulties of SMEs and our national conditions to specificallyhave comparative analysis and bring about suggestion for improvement whichincludes both inner and outer environment, setting of relative financing system andfinancing efficiency increasing. It aims to join up all the scattered parts and plays itsrole and strength to improve and slove the SMEs’ financing difficulty on the whole.But because of the wide covered category and limited knowledge and practicalmanagement experience, it has not been adequately assessed in the current operatingprocess. The author hope to refine and improve it with the development of society.