The Research On Financial Support Of Folk Finance For SME

SMEs play an unignorable role in national economic development, but with the development of SMEs, their demand for capital is growing. Due to various reasons, SMEs find it difficult to obtain the necessary funding from the formal financial markets, so that its development has been greatly restricted. In recent years, especially this year it has been concerned about the standardization of folk finance, and the relevant norms and regulations are also stepping up. Therefore, in this situation, we can consider financing from the folk financial channels in order that SMEs find a way out for financing.This paper analyzed SMEs'financing dilemma by studying the supply and demand of funds for SMEs. According to SMEs'obstacles of financing from formal financial institutions, the paper made recommendations to open folk channels for SME financing.Combination of theoretical and empirical evaluation of the feasibility and the role of folk financial support for SMEs'financing and problems of folk finance in support of SME financing. Ultimately the paper found measures of standardizing folk finance and improving the financing environment for SMEs in order to promote the development of private finance and mitigate SMEs'financing problems.