On The Financing Problems With Small And Medium-sized Enterprises In China

Along with the economic reform of the20th century, enterprises of small and medium-size keep the same pace with it, having an increasing influence on society. To some extent being an indispensable component of national economy, small and medium-sized enterprises and their development have influenced the development of our national economy. They are playing a leading role not only in China but also in the world, especially in some developed countries. After thirty years’continuous growth, they have contributed much to our country’s GDP, tax, and employment, but in terms of level of their economic development, there still remains a wide gap between China and western developed countries. In the present situation, China’s small and medium-sized enterprises have played a powerful role in the socialist marketeconomy. The cycle of their development is "growth-development-decline".However, those enterprises are ideally expected to reach a forever development, which actually is an ideal, thus the road to grow big is tough. Financing difficulty is a primal problem facing those small and medium-sized enterprises, has been a hot topic in this field globally. Many countries are struggling to take measures to solve this problem.It is found that many factors attribute to the financing problems which block their way to gofurther. Firstly those enterprises have their own defaults; Secondly little attention has been paid to their management benefit; Thirdly there is a lack of strong support from the government of all levels, all of the factors mentioned above have a direct impact on the sustainable development of national economy. This thesis mainly deals with the financing problems facing the small and medium-sized enterprises in our country through analysis of financial situations, problems, causes and countermeasures. Meanwhile the author tries to seek the solutions suitable for China’s small and medium-sized enterprises by contrast with the overseas enterprises with equal sizes. If the breakthrough can be made, a complete financing system will be set up for those enterprises at home.