The Plight Of The Financing Of Smes And Countermeasures

SMEs have already become a new growth point of national economy, its healthy and rapid development plays a decisive role in China's national economic development. At present, compared with its contribution to economic development, SMEs are still in a weak position in access to formal financial support. In recent years the issue of SMEs' financing is increasingly becoming a key factor that restricts China's economic growth, which has now become the main concern of the government and the financial department.In this paper, based on game theory and information economics theory, one analytical framework is built for the research of SMEs' financing issue, to find the micro-mechanism of credit rationing, to analyze the role of various entities' behavior in the mechanism formation of credit risk, and to learn the theoretical impact of financing for SMEs between relationship loans and banking structure. In this paper, with the analytical framework applied to Chinese reality, we learn that the development of relationship lending, and the establishment of small and medium-sized financial institutions are able to promote SMEs' financing. In view of this situation, in order to build a favorable external environment for SMEs' financing, the author put forward a number of relevant policy recommendations about the building-up of relationship lending, and small and medium-sized financial institutions, ranging from enterprises, banks and the Government aspects.