Study On Pawn Financing For Small And Medium-sized Enterprises

With the deepening of economic reform, the effects of small andmedium-sized enterprises in the national economy are more and more obvious.Small and medium-sized enterprises in China are the largest, most innovativevitality of the group. It plays an irreplaceable role in increasing employment,promoting economic growth, increasing financial revenue, promotingtechnological innovation, adjusting and optimizing the economic structure etc. Inour country, the number of small and medium-sized enterprises is over99.7%ofthe total number of enterprises. They provide more than50%of the tax; createmore than60%of GDP, complete more than75%enterprises and more than80%of new product development, provide more than80%jobs in the town. Thedevelopment of small and medium-sized enterprises is important to thedevelopment of the national economy.In recent years, the state has promulgated a series of policies and measuresto encourage the development of small and medium-sized enterprises, but thefinancing of them is still serious and becomes one of the bottleneck problemsrestricting their development. At present, small and medium-sized enterprisefinancing mainly depends on commercial bank loans. However because ofoperational risk, which causes the bank credit risks, makes it hard to get loansfrom banks. To a certain extent, the rapid development of pawnshops hasbroadened the financing channels for these small and medium enterprises,lowered financing threshold, and then effectively solved the financing difficultiesof small and medium-sized enterprises. Therefore, in theory and in practice, ithas great significance to analyze the small and medium-sized enterprises’financing from pawnshops.In the first chapter of the thesis, there is a statement of the background andthe theoretic support. The second chapter is a brief introduce of relevant theory,providing a theoretical foundation for the further study of SMEs’ financing frompawnshops. And also an analysis was made on the same chapter on the small andmedium-sized enterprise present financing situation. Through the characteristicsof small and medium enterprises, deeply find the causes of the financingdifficulties of SMEs. In the third part, we make a comparative analysis betweenbank loans and pawn financing. And then, in the forth chapter, an empiricalanalysis was made to further prove the conclusion that pawn financing is betterthan bank loans for SMEs. In order to promote the development of pawnfinancing better, in the fifth part, there is a research on the problems restrictingpawn financing, and after that, in the last part, the paper put forward thesuggestions for the development of pawn financing.