On The Financing Channels For Smes And Financing Innovation

The middle & small sized firms play an important role in the economic devdlopment . It helps to solve with unemployment, promote economic progress, accelerate innovation, realize the translation of science and technology, and so on. At the same time, if there is not the sufficient development of the middle & small sized firms, it is difficult to imagine about the development of big corporration. A large number of big corporations are created from small businesses. Many famous multination enterprises , For instance Toyota, Ford, Microsoft etc, are developped from the small businesses.In our country, the middle & small sized firms are confronted with more financing handicaps than the foreign small businesses are mainly in deficient credit with their assets , the fewer assets for mortgage and difficult in mortgage, oweing to underdevelopment of financial system, absence of credit grade evaluation, distortion of finance policy, bankrupt of some small businesses, and a series of problems. It has a thorough important significance to settle the difficulty of small business finance , it can boost up the small business' s competitive ability, deepen financial system, hasten economic development.It is a all-around social project to solve the financing problem of the middle & small sized firms . In the project, the bank, the govenment, the middle & small sized firms and the social public ought to be positive participators. The bank must ensure financing safety to keep the systematic durative when they provide credit. The goverment should set up a favourable environment of law and market so that the market turn into a main power to solve the problem, the middle & small sized firms ought to perfect itself in the frame of corporation, perfect the finance system, enhance transparency, pay attention to itself credit. It is necessary to establish credit culture and cultivate system of loose investment.The paper discussed mainly issue of the middle & small sized firms finance. It applied synthetically a series of theories of economics, financial mangemant , property right and so on. It referenced a great of pertinent datas of the foreign countries and our country. The first part expounded the function of the middle & small sized firms, the condition of exist and the difficulty of finance. The second part analysed the finance problem of the middle & small sized firms theoretically from the point of view of economic. The information dissymmetry and moral risk are a great obstacle of the middle & small sized firms. At the same time, via to analyse the reason of the foreign small business, and then analysed the reason of the difficult finance of the smallbusiness in our country. The third part studied the signification of credit to finance, the cause of lack credit. The business should constitute credit, the society should establish the credit system. The fourth part used for reference the foreign small business's finance supporting system and offered much revelation. The fifth part bringed forward some strategies of solving the finance difficuty of the middle & small sized firms.