Research On Financing Difficulties And Countermeasures Of Small And Medium Enterprises In China

Small and medium-sized enterprises play an important role in promoting economic growth, increasing employment rate, stimulating economic growth, and other aspects. Considering current characteristics of our economic development period, we will consolidate confidence to adapt the new normal state, we should pay more attention to the development of small and medium-sized enterprises. However,the financing difficult is always getting in the way, and will exist in its entire life cycle.This paper analyzed the development status and financing difficulties that the small and medium-sized enterprise is faced with, including the narrow financing channel, inadequate credit support, information asymmetry between financial institutions and small and medium-sized enterprise, lack of legal system and so on.Generally speaking, small and medium-sized enterprises in our country mainly depend on the bank as its financing institutions, but the bank credit funds for small and medium-sized enterprise is limited, the bank will pay more cautious for small and medium-sized enterprises with its non-performing loan ratio rising. Besides, this paper introduced the experience of United States, Japan, Italy on the financing difficulties of small and medium-sized enterprise.What’s more, this paper discussed the internal and external factors for the financing problems of small and medium-sized enterprise, pointed out the poor management, credit shortage, lack of financial policy support and legal protection have caused the deterioration of the financing difficulties.This paper argues that the joint efforts of the parties will solve the small and medium-sized enterprise financing difficult problem. Firstly, small and medium-sized enterprise should standardize its own production and business operation. Secondly,the government can launch practical financial preferential policies to support the enterprise and enrich the imperfect financial system.Thirdly, the government should guide private capital into the real economy.In addition, the government can set up official credit reporting system of small and medium-sized enterprises, and use innovative financing methods and tools actively. Finally, this paper argue that theInternet financial and the financial leasing will bring new opportunities to the small and medium enterprises, and we should make full use of them.