Research On The Financing Of Small And Medium-Sized Enterprises In Taiwan

During the development of Taiwan's economy, Small and Medium-Sized Enterprises exert irreplaceable function on accelerating economic development, creating job opportunity and impelling science and technology innovation, etc. However, Small-medium sized enterprises have difficulties on obtaining adequate capital support and during the three growing process in Taiwan., because the size is small and the working risk is big in initial stages. The difficulty of financing and financial system has badly embarrassed the growing of Small-medium sized enterprises. With the support of the government the financing situation has been improved in Taiwan. The small medium sized enterprise's bank, the general bank and other finance source have increased the loan specified amount. The financing channel has offered by the stockholder's rights financing, the creditor's rights financing and the venture capital financing assistance policy and the financing assistance system, especially the credit support system has been provided by the government in Taiwan. All of these ways have been adopted to improve the development of the small-medium sized enterprises in Taiwan. Nowadays the same problems have been taken place in Mainland China. The Chinese small-medium sized enterprises will get the useful experiences from Taiwan on respect of the small-medium sized enterprise's bank, the OTC market, the venture capital, the financing assistance and the credit support. The paper begins to mainly investigate the financing systems from Taiwan's Small-medium sized enterprises. It focuses on the indirect financing, direct financing and financing assistance system.This article uses the basis theory and analytical instruments of modern economics, financing and investment. It combines macro-analysis with microanalysis. The logical frame is the present situations and future outlets of the financing of Small-medium sized enterprises. It takes as mirror the successful experiences of Small-medium sized enterprises in Taiwan. I hope to give reference and experience to settle the Chinese Small-medium sized enterprises' financing problem.This article is divided into five chapters. The first chapter is based on some theories, which give definition of Small-medium sized enterprises and the enterprise financing. It studies on the Small-medium sized enterprises' characters, financing methods, financing structure and financing system. The second chapter analyses the Small-medium sized enterprises' financing problem .It introduces the development process and financing difficulties of Small-medium sized enterprises in Taiwan. The third chapter chooses the stock financing, OTC market financing and bank financing to study the problem of the Small-medium sized enterprises in Taiwan. In this chapter, we analyses the route of the Small-medium sized enterprises going to the stock market. It reveals how the OTC market help to improve the grow-up of the small medium sized technical enterprises in Taiwan. It helps us to get the inside connection between the capital investment and the the small-medium sized technical enterprises in Taiwan. The classical model will provide a good reference to mainland China to build the capital investment system. The fourth chapter discusses the sound financing assistance policy and the useful financing assistance system which are offered by the government in Taiwan. From what I have mentioned , I can conclude that more experiences were accumulate and the financing assistance system has been established as well. It is expected that some worthy experiences can be provided as reference through an in-depth description in this article for the establishment of the financing assistance system for the Small-medium sized enterprises in mainland China that is on the initial stage at the moment. The fifth chapter gives some suggestions on the respect of capital investments to the Small-medium sized enterprises in mainland China according to the indirect financing and direct financing .The author hopes that all the kinds of sources will be accumulated to improve the credit guarantee system. In the end ,the author draws a conclusion on the research on the Financing of Small and Medium-Sized Enterprises in Taiwan and give some improvements .