Comparative Reasearch:SMES Financing Policy Between USA And Japan

In the first place, this paper analyzes the definition, characteristics and relatedfinancing theories of SMEs. And get a conclusion that SMEs are lacking of ability toresist risks, and are poor at corporate governance. Moreover, the SMEs’ debt capacityis limited, and the scale of financing is smaller with higher financing costs.In the second place, this paper focus on SMEs’ financing system in the UnitedStates and Japan. The U.S. system of financial support for SMEs has the followingnotable characteristics:1, a single management agency,2, developed financialmarkets,3, the more perfect credit guarantee system,4, more favorable tax policies.Japanese SMEs financial supporting system is known for the following points:1,private financial institutions are underdeveloped,2, the government intervenesactivities of the SMEs’ financing directly,3, indirect financing market develops well.This paper analyzes financing system with the perspective of informationeconomics. And find the differences of government financing policy for SMEs of theUnited States and Japan. It believes that the Japanese government intervene more inthe SMEs’ financing, Japanese SMEs’ financing depend more heavily on government.In the long term, the development of SMEs under Japanese mode is less competitivethan the U.S.At present, the financing channels of SMEs in China are relatively narrow,mainly depending on the owners’ investment, internal financing and bank loans. It isdifficult for SMEs to meet requires of bank to get loans. Some SMEs have to turn tonon-formal financing, such as commercial credit and private lending. SMEs financialsystem in China is similar to that of Japan, this paper suggests that our governmentshould support the development of SMEs through the credit system construction. This paper suggests government to carry out these actions:1, Clean up theunreasonable fees and taxes to reduce burden on SMEs, and get more funds for SMEs,2, Credit guarantee system should be established, and improve the credit environment.This could effectively help banks and other financial institutions to manage credit risk.3, Improve the financing channels for SMEs, such as bond market.