Financing Problems Of SMEs In China And Countermeasures

The SMEs play an important role in a country's economic development. The rapid development of Chinese SMEs in the new century has fully shown its more and more important position in the national economy. They do great contribution to national economic output and employment. However, the SMEs have encountered many problems. In particular, over the years, there has been a lot of obstacles in financing, which does not match with their contribution and position in national economy.This paper first put forward relative theories on SMEs financing. And then the paper analyze the status of the financing structure of SMEs in China, summarizing the difficulties in financing of SEMs, such as the low proportion of internal financing, indirect financing mainly depending on bank loan, a lot of barriers to direct financing. On this basis, the financing models of the United States and Japan are introduced. Finally, the financing path options to guarantee the sustainable development of SMEs in China are giving, including developing small and medium commercial banks, standardizing the private financing, improving the public financing of SMEs, developing private equity fund and leveraged buyout financing.