The Financial Demand And Supply Of The SMEs: The Analysis Based On The Financial Life Cycle Of The Firm

There is a rapid surge in the number of SMEs( Small and medium enterprises ) in any one of vibrant economy. SMEs have become the most active factor in a country's economy. The development of SMEs in China have made great contributions to China's economic growth. However, due to SMEs's limitations ,and the lack of financial services which caused by commercial banks's lack of the sense of business ,the capacity of operating, and the lack of system supply, which leads to SMEs' financial services demand gap .Based on SME finance growth cycle theory ,this paper analyse the financial needs of SMEs.At first,the paper proved that China's SMEs are consistent with the growth cycle theory.Then divided the SME's wide varirty of financial services needs into four categories :demand for financing services,settling accounts to manage money serve demand ,information & advisory services and credit guarantee services .The paper also summed up the different needs of financial services in the SME growth cycle , and the nature of the reasons of SME's different financial services needs in different growth cycles .Then this paper have analysed the providing services present status of our country's commercial banks ,including financing service,settling accounts to manage money,information& advisory services and credit guarantee services.Defined the financial gap of SMEs which resulted by the asymmetry between the financial needs of SMEs and financial supply of the commercial banks.Analysed the reasons of the financial nedds gap of SMEs both from the limitationsof the SMEs and the financial services missing of the commercial banks .Finally,based on the present situation analysis and the financial needs gap of SMEs analysis, and combined the characteristics of SMEs's growth cycle ,this paper proposed the measures to meet the financial needs gap of SMEs,which including changes of the commercial banks marketing idea,strengthening the SME's product innovation,expanding products and services sales channels and reinforced the cooperation between the commercial banks and credit organizations,and all of above must be done according to the SMEs's features .