Study On Factors Affecting Debt Financing Of SMEs In Yunnan Province

Since the reform and opening up. the economy of Yunnan province have made great progress, and so did the SMEs of Yunnan province. More and more attention were paid to the SMEs from the society because of its great contribution on economy development, employment, revenue and scientific and technological progress. But compared with the eastern coastal areas, there is a big gap to catch up with, this paper argues that, it is the insufficient develop of SMEs had made this difference. The development of a company can not without the financial support, it just like blood of a man, without it, a company will hard to survive. It is long time for the issue of financing of SMEs, so did the Yunnan province. According to the people’s bank of China, more than98%of the total amount of all external debt are debt financing, equity financing accounted for only few. Therefore, the financing problem of SMEs depends largely on the solution of debt financing problem, so, it has great practical significance to find out the factors that affecting debt financing of SMEs of Yunnan province, and that is the problem to be solved in this paper.To this end, this paper use the combination of normative analysis and empirical analysis to find out the factors that affecting debt financing of SMEs of Yunnan province. The empirical results show that, the size, guarantee ability, ability of resist risk and the inner accumulation level are the main factors that affecting debt financing of SMEs. Finally, this paper offered proposals from the angle of SMEs themselves, financing channels and government support.