A Study On The Problem Of Small And Micro Enterprises Financing

The small and micro enterprises(SMES)play an important role in chinese economy,especially for the employ opportunities increasement,economic growth and social stability.However,the SMES are always restricted by the financing problems.In this paper,we are aimed to resolve the financing problems based on the social network(SN)theory,in order to build efficiency SN and to optimize the SN financing solutions for different types SMES in china.We investigate papers to study the SN influence on social capital and SMES financing,and to clarify the concepts,characters and classification of SN.Based on this,four financing cases for these three types SMES are analyzed in this paper: the navel orange case in southern Jiangxi,the toy town case in Chenghai,the Huangtaiji company case and the UC website case.As a result,we found that different financing channels are appropriate for different types SMES for the special SN characteristics.The T-SMES-I,short of mortgage asset and dissymmetry in information,are always financing through their relatives and friends,which are in need of strengthening their SN to solve the low credibility and information asymmetry problems.The T-SMES-C,somehow,are relatively easy to get the financing banks support for their strong regional SN,with the help of proper security credibility.The IH-SMES,are characterized with the innovative technology and high growth quality,would meet the financing requirements of ‘angel investors'.The angel financing channel is optimal for the IH-SMES,with simple financing formalities and the high financing efficiency.Furthermore,we proposed a optimized IH-SMES model based on the UC web cases,which would guide and meet the financing needs for those newly established IH-SMES.