Financial Difficulties And Countermeasures Of Small And Medium-sized Enterprises

In the economical development of Weifang, small and medium-sized enterprises occupy a very important status and their effects are becoming larger. Up to October, 2006, there are 178 thousands small and medium-sized enterprises in Weifang, taking up 98 percent of all the enterprises. The registered capital about 50 billions Yuan and they enroll over 850 thousands workers. 22.3 billions of added value was realized in the first half year of 2006, holding 30.6 percent of GDP. The development of Weifang's small and medium-sized enterprises contribute a lot to activating market competition, increasing efficiency, promoting economical rising, creating the job opportunity, raising the income of countrymen and transferring the villages' extra labor force. At present, workers enrolled in Weifang's small and medium-sized enterprises have occupied over 80 percent of all the employees. The whole city's villagers' earning is over 5 thousand Yuan, coming out first in Shan Dong Province, most of which are the income of peasants working in small and medium-sized enterprises.But in the development of small and medium-sized enterprises there exists very severe financing difficulties. Before September, 2006, the loan of Weifang's large enterprises is about 45.6 billion Yuan, taking up 53.46 percent of the total number of the whole city's loan. On the contrary, the proportion of small and medium-sized enterprises' loan has become less and less. Lacking capital has been the crucial factor restricting the development of small and medium-sized enterprises. Over 80 percent of the enterprises have the problem of lacking floating capital. Some enterprises couldn't borrow money from the banks and they borrow money from the society instead. But the amount is very limited and the annual interest rate is usually over 10 percent, so the pressure of developing is very great. For Weifang's social and economical development it is very meaningful to analyze the causes of such a difficult position and search after ways for solving it.On the basis of commenting on the former research, this thesis analyzes the causes of financing difficulties, makes a comparative study on the financing policy of small and medium-sized enterprises of America and Japan, analyzes the policy of Weifang Commercial Bank and Weifang Rural Credit Cooperatives towards small and medium-sized enterprises, and puts forward the countermeasure of dealing with financial problems of Weifang's small and medium-sized enterprises.