Research On Financing Of The Privately Owned Small And Medium-sized Enterprises In China

Nowadays, the Privately owned Small and Medium-sized Enterprises have taken a very significant statue in China's economic development. However, the problem of financing which restricts their further developments is obvious. This article is based on the cases of the financing of the Foshan small private enterprises, and analyzes the problems and causes of their financing Two aspects cause this situation. 1. There is not enough financing resource inside the enterprise. 2.There are many obstacles for the enterprises to finance outside. Tracing the reasons behind these problems, we find several factors. The first one is the limitation in the development of the small private enterprises in China; the second one is the incomplete financing system of the present financing institutions, the third one in that there are some elements in the macroeconomic environments restricting these enterprises' financing. Referring to financing experience of the civil and foreign small private enterprises, this article will probe into the financing system of these enterprises and the several factors from the government and provide measures to these problems.