Study Of Smes Financing Problems In Shenzhen

Small and medium-sized enterprise (SMEs) financing problem has been long existed, and the financial environment SMEs facing hinders the smooth development of most SMEs. SMEs in Shenzhen, most of which are small in scale and flexible in operation, have gained an advantage to survive in a fiercely competitive environment, and effectively promote stable economic growth of the Shenzhen Special Economic Zone, as well as provide many jobs and promote free market competition, thus play an important role in national economic development. However, as most of the SMEs are small in size and their corporate credit ratings are low, the internal management system are not standardized, and lack of information, there are no direct financing channels for them, and it is difficult to get loans or credit from banks or other financial institutions. The development of SMEs requires sufficient funds, but the majority of SMEs are facing difficulties in getting loans or guarantees from commercial banks and financial institutions, which are reluctant to lend money to SMEs. Although the national and local governments have issued a series of corresponding policies to solve the financing problems of SMEs, but due to the lack of sufficient supporting measures, those policies can only solve problems for few SMEs, the roots of financing problems of SMEs are still not eradicated.This thesis, based on SMEs’own characteristics, makes analysis of relevant laws and regulations, combined with some case analysis, and use several scientific methods and relevant economic theories and data models to tap the deep-seated reasons. Meanwhile, this thesis compares the financing policies for SMEs in Shenzhen with those in developed countries, Hong Kong and Macao in order to learn from the successful financing experience. As Shenzhen enjoys a favorable geographical location (adjacent to Hong Kong and Macao), this thesis tries to provide a relatively feasible solution to help Shenzhen make full use of that advantage. Currently, the overseas researches in this area are limited to macro levels and the solutions are too general-oriented with few feasibility. This article further proposed that the Government should make different financing policies for those SMEs in different scales, especially those tiny enterprises, and introduce different solutions to meet the financing needs of small and medium enterprises of all sizes. On the other hand, SMEs themselves should improve their qualities of management, standardize their financial management system, strengthen the credit rating system, and select financing methods that appropriate and effective for them. This thesis is of certain practical and innovative significance in solving the problem of financing problems that SMEs are faced. Hopefully, this thesis will give some hints to the research of the financing problems of SMEs in Shenzhen in future.