Sme Financing Models Discussed

In China, there're more and more Small and Medium – sized Enterprises (SMES) growing up which play a strategic role in the extraordinary economic development of China. It is generally agreed among international community of economics and academy that SMES will play the leading role in the economic development of the 21st and that's why more economists and socialists are paying more attention to the SMES in China, the greatest developing country in the world with an amazing growth rate all these years.Yet the SMES in China have been always facing insufficient financing channel and their growth rates are lowered down by lack of money. This article covers all financing channels SMES may look for, meanwhile analyzes the failure or difficulty they may meet when financing. First of all, the capital insufficiency originates from SMES themselves for their small & medium sizes which mean few or not enough assets to support their trust. Then the reasons might derive from government policy and the banks' prejudice.Thus the article lists all the advantages and disadvantages of different financing channels. To make the options clear to readers, the article analyzes the most famous and successful economy defined as "WenZhou Mode" and it is compared with another unique but also wonderful mode called "Pearl River Delta Mode". Two types of financing mode are different with similarities and the importance of comparison is that they might have given us surprises in the past and creative ideas at present as well as in the coming days.Finally, the content of this article is designed right for the solution to these financing problems, which may provide to our government for policymaking on the development of SMES and maneuverable countermeasures, and also may offer the operators of various SMES in China series of new ideas and creative methods with theory and practice combined, when making strategic policy and adopting measures of enforcement.