Study On Small And Medium-sized Enterprises’ Financing In China

Enterprises are the main participants in the economy market, they play important roles to promote China’s economic development, of which medium and small enterprises have underestimated strength. According to the data from information network for Chinese enterprises, to the end of2010, the total number of medium and small enterprises is more than99%of the total number of enterprises in China, which creates about60%of the GDP, provides around80%of urban jobs, pays about50%of the state tax revenue. Medium and small enterprises have played a growing status and role in China’s economic and social development, they have done a great job in prospering economy, promoting innovation, expanding exports and increasing employment. It can be said that the development of medium and small enterprises benefit the healthy development of the entire Chinese economy. But apparently medium and small enterprises did not get the best development, particularly in the demand for capital. Since the2007financial crisis, our government has taken several measures to stimulate economic development, including a substantial increase in the quantity of the national credit, however, medium and small enterprises did not get the money they need to obtain, financing problems in medium and small enterprises have not be eased. For medium and small enterprises, there are a variety of financing channels, including channels of direct and indirect ones, however, direct financing channels such as capital markets and bond markets both have relatively high demands and are difficult to use by them. So the bank loans are the main financing channel for medium and small enterprises. But, the information between banks and medium and small enterprises are asymmetrical, with the specificity of medium and small enterprises, banks tend to give credits to large companies, medium and small enterprises are difficult to access to bank loans, which aggravates the difficulty. Financing problem in medium and small enterprises not just exists in our country, it is a worldwide problem. Many scholars in the world analyze the problem from multiple perspectives, but few of them research it in the form of the questionnaire.This article is about to research the financing constrained problem in medium and small enterprises from bank credit perspective and try to give some countermeasures. The article uses the questionnaire to investigate and analyze the reasons of the issue, expecting to sum up the reasons and get the answers. Firstly, it introduces the research background and significance, the main content and methods, and theoretical results of international research. Secondly, it give an overview of our current situation of medium and small enterprises about the bank loans they get, then it investigate the causes of financial constraints by way of questionnaire, and then combines the findings with the theoretical in-depth economic roots. Finally, by telling about the domestic and foreign banks’financing business practice, with the methods of normative analysis, quantitative analysis and qualitative analysis, it thinks about proposals to expand the credit financing positions combined with China’s actual situation.