A Study Of Financing Problems Of Small And Medium Enterprises In Xuzhou Area

Today small and medium enterprises have playing a more and more important and irreplaceable role in China's national economy and society development. Xuzhou, a center city of Huaihai Economic Zone, located in the northern part of Jiangsu, on the junction of Su Lu Yu Wan, is an undeveloped region in Jiangsu for its total economic output and development. However in recent years, small and medium enterprises have risen rapidly in north Jiangsu, the rate of its economic growth is better than south Jiangsu, thus it has become more and more important in regional economic aggregate. In 2006 the city's GDP is 1428.91 billion yuan, 15.1% up compared with last year, among which, the growth of privately-run businesses contribute 788.26 billion yuan, 15.2% up compared with last year, accounted for 55.2% of the city's GDP. Small and medium enterprises have a wide space to develop in future, so to help them develop various financing activities,establish a modern financial service system,create a smooth and highly efficient financing channel and improve the financial service level is an important means to promote the development of small and medium enterprises,upgrade the industry level,encourage the market competition and innovation mechanism, as well as an effective way to reconstruct industrial pattern, to achieve the sustained,rapid and healthy development of national economy. Because of some influences come either from internal or external, such as lack of a sound system,not smooth for financing channel or high cost of financing, there is a sharp contrast between the subsidiary position of small and medium enterprises in China's financing market and their enormous contribution to economic performance. Financing difficulties have become a "bottleneck constrain" for the further development of China's small and medium enterprises.The thesis starts with the content and the important role of small and medium enterprises in China's economy, elaborates general development overview of small and medium enterprises in some regions of our country. In addition, the thesis takes some representative small and medium enterprises of Xuzhou for example, analyzes the "bottleneck problems" that faced by small and medium enterprises in undeveloped regions of present stage. The difficulties mainly lie on their poor management,low economic return,weak credit awareness,insufficient financing ability and the limitations of financial system, that is, the financial market has been slow to develop, etc. To solve these problems there are some exploratory ideas and methods are mentioned in this paper, which are mainly about how to strengthen the own quality of small and medium enterprises,establish a sound bank system,develop civil financing,financing lease and transfer government functions, etc. Finally, the thesis proposes some ideas for the development of small and medium enterprises from practical angle, with a view to help the development of small and medium enterprises in similar regions in China.