| Since reform and opening up, the growth rate of China's SMEs is the growth rate of large enterprises four times, already have grown a backbone of our national economy, which is the mainstay of enterprise groups in promot-ing technological advancement in enterprises, increasing employment, safe-guarding social stability, and played an important "stabilizer "role. In 2005, Jilin 900,000 SMEs create output value of the province's GDP, 36.6%, pay 9.37 billion yuan, accounting for the province's share of tax revenue for the 23.4% of employees were 3.03 million, representing employees in the prov-ince's urban and rural areas accounting for 24.8%.However, the growth of SMEs in the past few years has slowed down and efficiency decline, bankruptcies increase, according to our survey, mainly because of a shortage of funds. Financing difficulties restricting the development of SMEs has become a "bottleneck", and has become the focus of SMEs development problems.SMEs with financing difficulties, first of all, are financing channels too narrow. Financing channels are sluggish in the circumstances, the difficulty of SMEs access to credit funds is a common phenomenon, but to each enter-prise, the specific reasons is different, a bank of factors, social environmental factors, also have their own dimensions.From the point of view of the banking sector and financial institutions, a bank is cautious to loan to SMEs. The specific reasons are:1. State-owned commercial banks are in possession of 70% on the credit funds. However, the state-owned commercial banks in accordance with na-tional policies, structural adjustment credit, leading to credit funds to the cit-ies and large enterprises. 2. Deep-rooted concept of ownership, naturally, the state-owned com-mercial banks more inclined to state-owned enterprises. In addition, loaning to state-owned large and medium-sized enterprises, if the loans event of non-performing loans and bad debts are happended, the government can "buy."3. Because of the traditional concept of economies of scale, the state-owned commercial banks have taken the train of thought "catching main and neglecting details", "grasping and selecting excellent" strategy. In addi-tion, the widespread use of various commercial banks loans accountability, forcing credit officers are more cautious, afraid of taking risks.4. Asymmetric information, in order to avoid risks, the bank loans to SMEs cautiously.5. High costs result in banks not like to loan to SMEs. From the point of view of the social environment, the specific reasons are:1. Social Credit poor awareness.2. Lack of credit guarantee mechanisms, the current collateral has not suited to the needs of SMEs loans.3. Legal services is weak, and the the law against acts in spitefully evading financial debt have not be punished enough.4. Some government departments have the lower quality of service and the excessive charges in a number of areas which has been put into the bot-tleneck loans.From the point of view of businesses, mainly include highly operating risks, skimp assets can be used for mortgage, business management confu-sion, poor credit degrees, higher cost of borrowing funds and so on. On Jilin Province, causing SME financing sluggish due mainly to the following: 1) reform of the financial system is not in place, bank management and development of SMEs need uncoordinated. 2) Credit Guarantee industry development has been slow and weak security capacity. 3) Direct financing channels are sluggish, access to equity financing. 4) Introduced outmoded ways, the lack of innovation, success poor.Credit deterioration directly results in the banking business as well as the whole economy and the financial shrinking, high risk and inefficient. At present, over 80% of the social functions of financing are occupied by China's bank credit, and bank credit has become the dominant social credit and the core. Objectively, social credit and banking business have a high de-gree of positive correlation, and they are interdependent, with a total decline and development. Due to the current deterioration and weakening of credit and credit cycle of non-market, non-economic, so that the abnormal behavior of credit, credit risk by constantly tired, seriously hamper the bank's opera-tions.At the micro-level, credit relations by the credit, with letters and credit instruments (such as IOU, contracts, certificates of deposit and other con-tractual financial instruments) composed of three major elements. Credit rela-tions took shape, the effective credit cycle, the key lies in the two necessary conditions: First, credit awareness, and the second is the credit capacity. The two are each other conditions and indispensable. Subjective awareness of credibility indifferent lead to money without returning it, or ability to objec-tively credit may also not be a cause for the poor, a direct result of the failure and credit deterioration. The main causes deteriorating of the current social credit are:1. Because of fuzzy bank property and the main identity, bank debts is lack of institutional tough constraints.2. The local economy and the banks "compartmentalization" of the in-terests of the division, resulting in local government, enterprises jointly dodging bank debts becoming increasingly serious. 3. Bank credit capacity has lagged behind, a large number of business risks resulting in much economy lost.4. Incomplete social credit system, unable to meet the credit needs ef-fectively.5. Credit operations and the lack of a strong legal and moral environ-ment support, so that the popularity of default and breaking promises is out-speeded.In response to these social credits of the current deterioration of the main causes, the authors believe that the following points should start in or-der to perfecting China's social credit system:1. Speed up a modern enterprise system reforming and building the main to match the market economy and the micro-credit.2. To strengthen internal management, improve bank credit capacity.3. Establishment of a personal credit and social security systems, exten-sive links credit demand.4. In accordance with laws and governance, in accordance with rule by virtue letter, omni directional rectification credit environment, open credit obstruction.SME financing difficulties is a global universal problem, and our previ-ous financing system formed mostly by state-owned enterprises, especially large state-owned enterprises as the main target of design implementation, and not a fund-raising system for SMEs. Currently, the main sources of funds for SMEs rely on bank credit. However, the banks to ensure financial security, the high level of credit requirements, and the inherent policy limitations and barriers lead banks not like to loan to SMEs. Therefore, the SMEs can not access to development funds. At the same time, direct financing market and the motherboard market clientele is mainly state-owned large and me-dium-sized enterprises, and the requirements in total equity and high profit-ability is highly, so the majority of SMEs do not meet the entry conditions. Thus, despite increasing the role of SMEs, but the financing environment faced to SMEs is very harsh.From the current situation, the more appropriate way of financing SMEs are Venture Capital Fund, the Growth Enterprise Market, civil financial and so on. SMEs (especially high-tech businesses) usually have to go through five stages of development: research and development stage, the initial stage, the early growth stage, accelerated growth stage and mature stage. The pre-venture capital of phases I and II comes mainly from the private invest-ment; Venture capital funds mainly solve the middle and late pate of the sec-ond stage and the early part of the third phase; GEM resolved in a major market in the latter part of the third stage and fourth stage of initial capi-tal-raising gold issues; the fourth and fifth stages in the late stages of enter-prises in raising capital funds may consider seeking board market to solve. Civil financial, with its further development and perfection can be suitable for the various stages of SME financing.According to all the reasons for SME financing difficulties of our prov-ince, we can further specific choice from the following aspects for our prov-ince to the financing channels for SMEs:1. Structures platform, and work hard to fight for banks and other finan-cial-sector funding to support a sound foundation. The provincial SME credit guarantee institutions in the lead, cities and counties SME guarantee agencies as the backbone for the other two wings of the security agencies, the credit guarantee system for constructing the province. To strengthen the system of exchange and cooperation, enhance the security agencies at all levels of credit rating and force, reasonable decentralized system risk. The provincial security agencies should, in principle, to re-establish security agencies, secu-rity agencies to cities and counties for clients, in general to guarantee busi-ness. City and county agencies should in principle be secured only area for the SME clients, conducting direct security-related businesses. At the same time the provincial level to the security agencies to guarantee or UNPROFOR business.2. Improvement and innovation in financial services, increasing the availability of credit to SMEs intensity. The financial sector from the SME characteristics of the financial system and speed up institutional innovation, improve financial services, and appropriate relaxation of the conditions for granting loans to SMEs, raising the proportion of loans for SMEs.3. The establishment of a multi-level capital market to meet the invest-ment and financing diversified main demand. Under existing conditions can be used, in accordance with the relevant state laws, regulations, policies and the provisions of our province should actively cultivate and develop their own private equity capital market transactions care, the introduction of new strategic investors and providing financing to SMEs growth, and promote cross-region and cross-sectoral restructuring of assets to Health production elements in a wider scope flows, optimize the distribution of resources.4. Intensify efforts to attract foreign investment, create fully funded re-location South Channel. To attract foreign investment should focus on Europe, Southeast Asia and Japan, and South Korea and Hong Kong and Macao, and to attract inner investment should focus on "Yangtze River Delta", "Pearl River Delta", and actively establish the "international financial bridges" and "South-channel relocation" efforts to form an international and national economic and technological cooperation long-term mechanism. To solve the bottleneck problem of SME financing, a means alone is not feasible, so we need to solve it through variety of channels. The problem of financing SMEs in the face of it is financing channels narrow, but the under-lying reasons for the problem is the structure and system. So introduce some policy alone is not sufficient to solve the problem, we must deepen the re-form of the financial system, speed up the adjustment of the system, inte- grated consider the development of SMEs from the overall situation of na-tional economic and social development. |
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