The Research On The Development Of The Financing Patterns Of Small And Medium Enterprises In China

While inspecting the development of global economy, it is obvious that the past 20th century is the time small and medium enterprises (SME) prosper wildly. These rapid progress not only refilled new energy to the economy of west developed countries, but also pushed forward that of developing countries, in all, contribute to the prosperity of the global economy. In the latest decades, small and medium enterprises play very important role in economy development, technology advancement, industry structure optimization, job opportunity, government tax income, international trade, and export etc for every country. For USA, the so called ten year's 'rational' prosperity is indispensable to the thrive of small and medium enterprises. In terms of China, during a two decades span from 1980 which was characterized by the city economy system reform and financial system reform, small and medium enterprises have gone through a historical development of small-to-large and fragile-to-strong. The social economy changed dramatically from the dominating communist and collective economy to the current diverse economy while private economy dominating. So far, small and medium enterprises have been the most active economy and the carrier of technology innovation. They are also an important part of national economy and the new growth point of social productivity.However, since the market economy system in China is still immature, small and medium enterprises have various difficulties while developing, when it reaches certain size, most of them cannot progress smoothly; some are even starting to decline. Many exports and scholars have diagnosed it from different perspectives and different angles. A result so far has shown that financial is a prevailing problem hinging the development of small and medium enterprises. The reason is, small and medium enterprises, its starting money usually comes from self and civil loan, no much problem for the financing when the business size is still small. But when it begins to grown, the environment has changed dramatically, the original financing style cannot adapt to the new situation, with timely adjusting, fading is the natural destiny. This paper bases on the status quo of the development of small and medium enterprises in China, the current enterprise financing theory is overlooked, the development of financing patterns of small and medium enterprises in developed countries is combined, to analyze the characteristic and development of the small and medium enterprises' financing in China in different stages, diversified financing patterns is proposed to overcome the financing constraints, and proposed the optimization measures of the external financing environment for the small and medium enterprises. It is hoped that this paper can provide some resolution to the prosperous small and medium enterprises in financing patterns, help them adopting new financing patterns to breakthrough the financing dilemma, and achieve its become strong and longevity development goals.