Research Of Small And Medium-sized Enterprise Financing Issue In Shanxi Province

Small and medium-sized enterprises(SMEs) has already occupied an important position in the world economic development, whose total economic output has become a major source of world economic growth which can not be ignored.At present, Chinese small and medium enterprises also shows the important role of economic development, which has become a key factor of economic growth, stable employment.But with the growth of SMEs there is an important issue which has become increasingly prominent, the financing issue.Since it is difficult to effectively obtain financing funds, SMEs own development has been severely suppressed.Shanxi province as the relatively backward provinces of China’s economic development.SMEs economic output has accounted for 43.2% of its GDP and provides 75% of jobs for Shanxi province.However, the development of SMEs in Shanxi province started late and their level of development is still low compared with the developed provinces.At the same time SMEs are affected by financial development lags of Shanxi provinces,whose financing environment is relatively poor.Therefore, the problem of its financing more prominent.To improve the financing situation of SMEs in Shanxi Province and promote its economic growth,the paper chooses to study the financing problem of Shanxi SMEs. To solve this problem,the paper analyzes the current financing situation of Shanxi SMEs,and argues that its current financing problems are the poor internal financing,the narrow external financing,difficult bank loans and the weak guarantee agencies.Then the paper specifically analyzes the causes of the financing problems of SMEs in Shanxi Province from three points which are the lower quality of SMEs, the lagged financial development and the lack of government support. The paper is based on the data of small plates, the GEM and three new board listed SMEs in Shanxi province, which makes the empirical analysis about the factors of their financing capacity.Combined with the actual situation of,the paper gives the main reasons for the low financing capacity of SMEs in Shanxi province which are the low comprehensive management capacity of SMEs and the adverse effects of external financing environment after analyzing the results of the performance of each factor.This result is the same as the theoretical analysis of the paper before.At last this paper presents suggestions for the financing problems of Shanxi SME which is based on the foregoing research.This paper argues that firstly SMEs should accelerate the reform of the enterprise system and industrial structure to enhance the overall quality of its own.Secondly, Shanxi should accelerate the development of the financial system to improve the environment of financial services.Thirdly, the government of Shanxi Province should complete ancillary service system for as quickly as possible in order to provide a good environment for the healthy development of the SMEs financing.At present, the research of SMEs financing problems is largely based on theoretical and policy studies, which lacks the empirical analysis.The innovation of the paper is that it provides some empirical support for the research of SMEs financing issue which is based on the data of small plates, the GEM and three new board listed SMEs in Shanxi province.Further research of the paper need more comprehensive data to support, so that we can explore the differentiation of the financing problems of SMEs in Shanxi Province in a more detailed and micro level which can make a contribution to the research for solving this difficult problem.