Research On The SMEs Development And Financial Support

From 1990s, the SMEs have become the most important engine for the economic marketlization and economic growth. Especially in the field of economic growth, employments expand, technology innovation and social wealthy creation. Today, more and more people pay their much attention to the SMEs development and its financial support. But they still face varieties of difficulties while developing rapidly, which make it extremely difficult for them to develop, especially the problem of funding. Therefore, in order to promote the development of SMEs, it will be a key to solve the funding problem and offer financing support to them.The SMEs life cycle indicates that with the change of its external factors, the SMEs capital needs also varied. So the key factor we analyze is the SMEs financial cycle. In this way we can find and meet enterprises different demand in different life cycle stages.In order to avoid the market failure, the government should offer some "Public products" to avert the converse choice and moral hazard which originated from information asymmetry so that the financial institution can decrease the loan risk.