The Research on Financing Problems of PRC’s SMEs

Abstract

With the rapid development of economy, middle and small-sized enterprises are playing a more and more important role in market economic and become an important part of national economy in our country which is also an active strength in the market. However, the manage environment of middle and small-sized enterprises is not very favorable, specially the problem of financing. The problem of fund shortage is becoming the most serious problem which restricts the development or even threats the survival of middle and small-sized enterprises.
This essay is going to analysis the finance theory according to different sizes of business, the financing channels and the present situation of our country small and medium-sized enterprises. It will also start from three aspects which are the policy environment, social and bank and the weakness of middle and small-sized enterprises themselves. In order to find the reason for financing difficulties, it will study the finical system, the credit guarantee system, the information symmetry and the cost of financing, etc. The aim of this essay is to put forward some improvement measures and countermeasures according to the reasons discussed above. Nowadays, our country is in the high-speed economic development stage, if we can not find a better way to deal with small and medium-sized enterprise financing problems, there will have severe negative impact on the economy development in our country. So researching on the problems of small and medium-sized enterprise financing difficulties and finding the solution has practical significance.
Key words: Medium-sized and small enterprises; Financing; Bank; Self-construction