Study On Financing Of Small And Medium-Sized Enterprises

During the development of Chinese economy, Small and Medium-Sized Enterprises (hereinafter called SMEs) exert irreplaceable function on accelerating economic development, creating job opportunity, increasing financial revenue and impelling science and technology innovation, etc. However, SMEs are difficulty on obtaining adequate capital support during the growing process of SMEs, because the size is small and the working risk is big in initial stages. The difficulty of financing has badly embarrassed the growing of SMEs and the well-balanced development of Chinese economy. The paper begins to mainly investigate their financing systems from foreign SMEs. Then, IT industry is the investigation area of this paper. By analyzing their financing characteristic, environment, channel, internal factor and strategy in different development stages of SMEs, we provide some advices of the practical financing way on existing condition in China. Finally, the two effective methods are advised for improving the future financing of SMEs. First, on the external side, we need a well financing environment. The government, finance industry and society should jointly take action for SMEs. The government should constitute the right legal system and provide necessary leading and supports. The finance industry should establish multi channel finance system. The whole society should intensify to build the credit and assurance system. So SMEs could obtain the policy, finance supports and more financing channels. At the same time, on the internal side, SMEs need to constantly improve the quality themselves for changing their adverse status in the financing process.