Research On The Financing Difficulty Of Small And Medium Sized Rural Enterprises

The small and medium-sized enterprises have been an indispensable part of and a great contributor to the national economy.But the financing support they got does not match their vital roles in the economy.Financing difficulties have become the biggest obstacle which limits SMEs' growth,and even dangers their survival.Firstly,the thesis reviews the global researches on the problems SMEs encounter in financing.Specifically,it defines what SMEs are,analyzes their characteristics and financing difficulties in different phases and offers solutions accordingly.The thesis then arrives to the conclusion that SMEs are quite difficult to get financing support from both theoretic and economic views.Transaction Cost Theory,Asymmetric Information Theory,Credit Rationing Theory and Game Theory offer theoretical support while study on current status of-domestic SMEs offers economic support.By discussing management methods adopted by American and Japanese SMEs,their supporting policies,laws and regulations,financing modes,instruments and insurance methods,the thesis founds itself in the forming of domestic legal structure and economic policies.Besides,the thesis offers suggestions on tackling the financing difficulties domestic SMEs face at the inspiration of American and Japanese modes.Finally,the thesis proposes several suggestions on how to improve SMEs' financing situations from the perspectives of SME themselves,financial institutions and the government.To be in details,SMEs need to improve company qualities,upgrade credit ratings,strengthen managing abilities and expand financing sources.Financial institutions should improve services as well,and fulfill credit policies on SMEs,develop more branches and products,and establish innovative credit risk control mechanisms.Government should increase investments in SMEs and constitute more favorable policies against them.Moreover,the government should improve the insurance mechanisms,and create a favorable external financing environment for SMEs.