The Construction Of Financing Channels For Small & Medium Enterprises

The Small & medium enterprises played a great role in our country's economic system since 1978. However, financing difficulty had become a bottleneck, which restricted the development of small & medium enterprises. Starting from the enterprise life cycle, the paper intents to prove that different financing need and financing characteristic are for small & medium enterprises in different life cycle phases, proposals to construct the financing channels in accordance with different financing needs. Thought comparing the financing channels used for small & medium enterprises of China and US in different life cycle phases, we find out our financing channels' problems, which are unsuitable for the development of small & medium enterprises. The paper suggests constructing multi-level financing channels to accelerate the development of small & medium enterprises.