The Problems And Strategies In Financing Of Middle-Sized And Small-Sized Enterprises In Less Developed Areas

In industry, middle-sized and small-sized enterprises account for 99 percent of the total enterprises in less developed areas, and their workers also make up 78.41 percent of the worker is the whole area. In the past, the output value of middle-sized and small-sized enterprises held less than 1 percent of GDP, whereas currently, it has amounted to more than 30 percent of GDP. Such being the case, to solve the difficulties in raising money and attain fast and favorable development in middle-sized and small-sized enterprises in less developed areas has a significant and profound strategic meaning in boosting harmonious local economy and constructing a harmonious society. However, in comparison with middle-sized and small-sized enterprises in developed areas, financial development lags behind economic development and financial structure lags behind economic structure in less developed areas. Moreover, middle-sized and small-sized enterprises in less developed areas are small-scaled. Their management falls behind and the capability of scientific and technological innovation is low. With the serious bounds of insufficient finance, the obstacles of financing regulations become more obvious and the financing environment is worsening. The narrowness of financing channel, the obstruction of indirect financing and the high threshold of direct financing force middle-sized and small-sized enterprises to develop and strengthen themselves by their own accumulation. Difficulty in raising money has become a bottleneck in development of middle-sized and small-sized enterprises in less developed areas.This article first systemically analyzes the studies and current situation in financing of middle-sized and small-sized enterprises in less developed areas at home and abroad. Then, applying the knowledge of finance, management and economics, the thesis discusses the economic significance, present major problems and difficulties, causes and obstacles in financing of middle-sized and small-sized enterprises of less developed areas. Finally, the dissertation goes further into the financing patterns and channels for middle-sized and small-sized enterprises of less developed areas, proposes some strategies from both macro and micro viewpoint and makes exposition combining with practice.