Sme Financing Problem

As reform and opening up of our country quickens, people have been paying more attention to financing problem of SMEs (Small-and-media-sized-enterprises).On one hand, SMEs have made great contribution to sustained growth of our economy and become important foundation of the social stabilization. Nowadays, SMEs have taken up 99.8% of all enterprises. On the other, further development of SMEs has been greatly restricted. Financing problem has become the first and foremost "bottle-neck" which constrains their development.At present, our economy is at the stage of mechanism-convert and structure-readjustment. Therefore, financing difficulty of SMEs is a rather complex problem. To deal with it, we must analyze the deep causes of it. In this dissertation, I try to discuss the responsibilities of the business itself, the bank system, the government and the security system respectively. Simple analysises are as follows: First (from the perspective of SMEs), SMEs are lack of equity capital and high-quality talent. Financial mechanism and management system are incomplete. The technical degree and credit degree are low. Second (from the perspective of the bank system), the collateral requirement is rigid, the loan process is complicated, the loan cost is high, the loan management system for SMEs is incomplete, the authorization of junior banks is limited. Third (from the perspective of government), incomplete laws and rules, too much government interference, incomplete capital market, distempered serving system for SMEs and the stagnant social credit system construction. Fourth (from the perspective of security system), too little registered capital, inadequate collateral capacity, unsound security mechanism, and no recoup for security constitutions.According to the research on the causes of financing problem of SMEs and use other countries' experiences for reference, I put forward four strategies to tackle the dilemma which SMEs are being faced with. First, SMEs should add equity capital from more sources, better financial mechanism and management system, create more technical innovations and strengthen their credit consciousness. Second, the bank system should lower the collateral requirement, improve their management of loan, consummate the credit-appraising system for SMEs and promoting mechanism, and initiate more financial product innovations. Third, the government should try to make our law system more intact, cut down unsuitable interference, and perfect the capital market and social credit system, set up development fund for SMEs. Fourth, as for security system, we must nail down the role of government in the security system, strengthen cooperation of security field, perfect security system and re-security system, and build risk-compensating mechanism.