Research On Financing Dilemma And Countermeasure Of Small And Medium-sized Enterprises In Laos

In recent years,Laos SMEs have developed rapidly and have become one of the most competitive economic forces in Laos at present.It is a new growth point for the national economy.The influence of SMEs on the Lao economy is growing,and many long-standing problems in Laos have been solved social problems.For example,SMEs play an important role in the traditional industry and absorb more labor and employment,thus alleviating the employment pressure of the society and maintaining social stability and economic development.Laos' small and medium-sized enterprises also have many defects.One of the biggest difficulties is the difficulty of financing for small and medium-sized enterprises.It has restricted the further development of small and medium-sized enterprises in Laos and has become a stumbling block for enterprises.This paper analyzes the status quo of financing for small and medium-sized enterprises in Laos.The financing methods mainly include government financial allocation,bank loans,private loans,equity transfer and mergers.Although Laos'financing methods are diversified,they cannot meet the urgent needs of enterprises need Laos' SME financing is facing difficulties.The narrow financing channels result in insufficient funding sources;insufficient credit support;information asymmetry between financial institutions and SMEs;and the laws related to SME financing are still blank.In order to further analyze the causes of financing difficulties of SMEs in Laos,this paper adopts a questionnaire survey method to investigate the small and medium-sized enterprises in Laos.The study found that most SMEs in Laos operate on a small scale,and most of them are in the start-up period.The operating conditions are poor,the profitability is non-transparent,and financial institutions such as banks cannot accurately understand the profitability of SMEs.The overall quality of Laos' SMEs is poor and there is a lack of scientific management decision-making mechanisms.The financial situation of most SMEs in Laos is not scientific and standardized,and many SMEs lack a sound financial system.Laos has not yet established a sound credit guarantee system.SMEs have poor asset transferability and it is difficult to provide effective assets for mortgage.The non-transparency of the credibility and compliance capabilities of SMEs has led to the inability of financial institutions such as banks to collect targeted information on loans.Finally,this paper proposes countermeasures to solve the financing dilemma of SMEs in Laos:strengthen the management ability of SMEs;improve the institutional environment for SME financing;strengthen the information and credit construction of SMEs;guide private financial institutions to adapt to the trend;seek other financing methods,multi-channel Financing.