Siping Rural Financing Difficulty Of Small And Medium-sized Enterprise Loan Problems And Solutions

Small and medium-sized enterprises(SMEs) are occupying an important position in China’s economic development. But their development are not very smooth as they are facing many difficulties and challenges, among which the difficulty in financing loans is the biggest obstacle. As China’s market economy system reform is gradually stepping into the deep water area, SMEs, the most active development forces in China’s national economy, are playing vital roles in creating more jobs, improving people’s living quality and the innovative development in technology. In addition, they have become the main financial sources for provinces, cities and areas in China. Compared to such contributions, they are faced with severe financing difficulties while growing, with those in loan aspect in financing are especially prominent. Capital, the basis that enterprises rely on for existence and development, has now become an important factor that hinders the development of China’s SMEs. Rural small and medium-sized enterprises are in key positions in China’s all SMEs. As China’s reform goes deeper, its economy has gradually polarized. Therefore, we shall take the development problem of rural small and medium-sized enterprises as a big one to be resolved in China’s economic development. In addition, domestic studies on the financing field of SMEs have put forward countermeasures and suggestions on institution, system and financing product construction mainly from the two breakthrough points, i.e. the government and the bank. But such studies have neglected the problems of SMEs themselves as the financing bodies as well as the methods and ways to solve problems by improving their own corporate governance and competitiveness.Financing is a behavior and process for a enterprise or individual to raise fund. As an important constitutional aspect of financing, loan plays an important role in Siping region. Under such a background, this article takes the aspect of loan in financing system as the key research content, plans to take rural small and medium-sized enterprises in Siping City as the object of study, and analyzes the problem that it is hard for rural small and medium-sized enterprises in Siping region to loan, through questionnaire survey. In this article, it considers that their reasons of financing difficulty are related to factors of government organization, financial system and enterprise itself. Then, it puts forward suggestions on solving financing and loan difficulties of rural small and medium-sized enterprises from three aspects: enhancing the supporting function of government departments, strengthening the supporting of financial institutions,and accelerating the self-construction of small and medium-sized enterprises. It hopes to have some positive guiding sense for financing and loan of rural small and medium-sized enterprises in Siping City.