Analysis Of SMEs’ Financing Predicament: In The View Of Relationship Lending

Since China’s policy of reform and opening up, with the rapid development of small and medium-sized enterprise scale, its function become more and more important in the socialist market economy. Especially our country is in a critical period of economic transition and social transformation, their development not only has an important effect on stabling economic growth, but also maintaining social stability, building an innovation-oriented country, alleviating the growing employment pressure. But now they face with heavy burden, high cost, lack of talents, lack of funds and so on in the development process, especially financing dilemma.According to the theory of information asymmetry, this article analysis the absolute advantage of relationship lending which help handle SMEs’ financing dilemma. After reading lots of former researching paper, the author find that reducing information-asymmetry is the key to help the SMEs. First, this paper compares relationship lending with some other financing method using Comparative advantage analysis, raises the view that relationship lending is a great method in handling SMEs’ financing dilemma. Then this paper uses empirical method to examine the theory analysis, with the data from SMEs in Caohejing high-tec park. Finally, considerate of China’s situation, this paper puts forward policy recommendations in the view of government, financial intermediary and enterprise.