Analysis On Capital Market And Financing Setting Of SMEs In Western Region

Small and Medium Enterprise (SMEs)occupies an important position in the national economic development, and their growth and development relates to economic construction in China. How to maintain its development rapidly and healthy in China is a very important issue today. SMEs in the western region are an important factor to maintain economic development rapidly and economic vitality. In the long time, because of various reasons and factors, SMEs hinder overall economic growth. The main problem is as follow: low level of industries, ordinary support industry, low-grade product construction, small proportion of products with high added value, lack of market competitive power, low level of technological structure, low resource utilization, short of talents, low level of management and so on. In order to solve these problems, it must resolve financing problem at first. This paper's research point is how to improve SMEs financing environment in the western region, and how to resolve narrow financing channels.In this paper, through analyzing the situation of the capital market in the western region, it describes the characteristics of SMEs in the west and financing situation. It explores the financing difficulties of SMEs in the western region from the external environmental factors and internal environmental factors, and gives some suggestion on how to deal with these problems.Firstly, this paper explains the background and significance of topics, reviews the content and structure of paper, and makes the innovation. Then it summarizes some predecessors'theories on capital markets and financing of small and medium enterprises, including the definition of the capital market and SMEs, the functions of capital markets in the regional economic development, modern capital market development theory, SME financing theory and so on. Next, it analyzes the situation of SME financing in the western region, and points out the problems of capital market in the western such as small market size, weak mechanism, unbalance financing structure and so on. Further, the low level of capital market development causes SME financing difficulties in western region. Then it describes the main difficulties of SMEs'financing in the western region. From the micro-macro point of view, it points out the western region the SME financing problems of external environmental factors and internal factors in the western region. Finally, it gives some measures. For one thing it suggests constructing a favorable external environment of SMEs financing by improving direct financing and indirect financing environment; for another, it suggests constructing a favorable indirect environment of SMEs financing by strengthening credit-building, financial management system, technological innovation.