The Research On The Chinese Small And Middle-scale Enterprise's Financing Bottleneck

Small and middle-scale enterprises (which is short for MSE) are playing a more and more important role in Chinese economy. To some extent, on aspects of creating more occupations, increasing income, making our society more stable and optimizing industry structure, the small and middle-scale enterprises have significant functions which the large-scale enterprises absolutely can not cover. However, the small and middle-scale enterprises are also facing their own key problem which is the financing bottleneck.In this paper, we look at all the present financing channels of Small and middle-scale enterprises, such as internal financing, direct financing and indirect financing channel. We also list the contradictions between supply and demand on the capital. As a result, the bottleneck, we think, is due to the lack of efficient financing channels. It is represented in three aspects as below:(l)The internal financing channel is an important way for them, but the capital is very limited;(2)The direct financing channel is a main tendency in the future, but it is less effective. We are looking forward to the multi-channel in this aspect;(3)The indirect financing channel is the main way for them, but the unique channel is the loan of the bank.For financing bottleneck of the small and middle-scale enterprise, we analyze their internal factors as well as the external factors.The external factors include the government, bank etc. Furthermore, using some resources abroad for reference, we offer some suggestions on this problem from the aspects of policy environment, trust environment, and update and innovation of the financing channel.This paper is divided into five parts. Each one could be briefly introduced as blow: In the first part, the basic relation between the financing market and enterprise financing has been introduced. The basic theory on the modern enterprise financing about the bottleneck has been listed.In the second part, the factors, which influence the small and middle-scale enterprise's financing demand, have been listed. We concentrate on the different types of enterprise, different developing steps and macro factors.In the third part, we analyze the present situation of the financing bottleneck of the small and middle-scale enterprise. We also concentrate on different financing channels including internal, direct and indirect financing ones. At the end of this part, we draw the conclusion that the bottleneck is due to the less efficiency in the financing channel. After that, we give some reasons for it.In the forth part, contrasting the situation of the similar enterprise abroad, we conclude the general rule of the financing channel of the small and middle-scale enterprise in the world. It can give us some reference in this aspect.In the last part, in order to solve the problem, we give some measures and suggestions on the aspects of police environment, trust environment and update and innovation of the financing channel.