The Research On Financing Activity For Privitized Smes In China

The economical growth of SMEs plays increasingly an important role in a country. Due to the typical characteristics that are different from those of the large-scale ones , the SMEs have their own distinctive expanding features and obstacles during their upgrowth. Fund shortage , which has been worked over by many researchers overseas in recent years, is one of the most outstanding obstacles for SMEs, since the environment to their faces in China is differing socially and economically from that of their rivals abroad. This thesis studies the factors that influence the financing activities of SMEs when it comes to their fund-raising.There are five parts of this thesis. In Part 1 and 2 are the background and the significance of the research and , the documents(bibliographies) concerning financing. The third , on the basis of statistics of their financing activities and surroundings, furnishes a descriptive statistics of financing activities of SMEs using the variance analysis of single factor and related documents and datum. Part 4 , by the theories and the datum , analyzes first off the factors influencing the financing activities of SMEs which are as followed①Typical characteristics , varying stages during their development, profitability and types of organization;②capital structure and credit allocation due to the information assymmetry of the market;③the faultiness of the financial environment and the scant service and suport to SMES from the Chinese government , such as the relationship between banks and enterprises, commercial banks , the imperfectness of credit guarantee system;④local economy and regional developing features;⑤Reform and innovation of the financial system. Secondly , by setting up the model of the factors that influence the financial activities of SMEs , part 4 gives a quantifiable analysis to these qualitative factors ; and the next , expatiate on the negative affects of restraints of the fund-raising activities ; last , proposal on resolving these restraints. The fifth is a sumup where the author in a new way tries it out giving a quantifiable analysis to the qualitative factors and finding out the top one among those that influences financing activities of SMEs so that the reasoning is more persuative and scientific; the next research is to set up the balancing relationship between banks and enterprises , how to measure and control the credit risk for the loans to SMEs ,and to deepen the study on their financing activities.