A Study Of The Financing Environment Influence In Western SMEs

Small and medium enterprises (SMEs) occupy an important position in the growth of national economy. They play an important role in improving economic performance and pushing social economic growth. SMEs' growth and development concerns national economic construction. It is a very important issue for our country that how to maintain SMEs' sound and rapid development. In the western region of our country, SME is an important force in social development and regional economic development. It has almost become the most dynamic form of enterprise in the western regional industrial structure. The economic development of the western region largely depends on SMEs' development. However. SMEs' development in western region is hindered by various factors. Financial difficulty is one of the factors that hinder SMEs' development. The most SMEs in western region are invested by private capital which is on a limited scale. This causes insufficient capital supply for SMEs. Further more, the large gap in financing environment between western region and eastern region makes the financing difficulty more evident. Thus, this paper's main tasks are analyzing the financing environment in western region and studying the relation between financing environment and SMEs' growth.SMEs in western region are researched in this paper. The paper has organized the relevant theories about financing environment and SMEs'growth, built an evaluation index system of financing environment and SMEs' growth and built a hypothesis model of the relation between financing environment and the growth of SMEs in western region based on plenty of literatures. The research method used in this paper is empirical approach. Five cities in Guizhou province are investigated via questionnaire. The collected data has been analyzed by Statistic Package for Social Science 16.0 (SPSS16.0). The research model and hypothesis are verified by data analyzing. Finally, the relation model between financing environment and the growth of SMEs in western region is received via empirical analysis.The study of this paper indicates that:1. There is a positive relationship between financing environment and the growth of SMEs in western region. All the factors of financing environment have positive influence on SMEs'growth. In those factors, social culture environment has the greatest influence on SMEs'growth, financial services environment has obvious influence on it, and the influence of policy environment is less.2. Financial environment has positive influence on all the aspects of SMEs'growth in western region. In those aspects, financial resources and the technological innovation capability are influenced obviously, information resources and management capability are influenced in different level.