Research On The Functions Of The Government In Small Business Financing

In China, the small and medium-sized enterprise makes an increasing contribution to our economy growth. It is an organic component of the socialist market economy, which plays an increasingly important role in technological innovation of products, industrial restructuring, regional economic development, employment attraction, transferring of rural labor, improving of people’s living standard etc. Besides, it is an important force for the building of a harmonious society. It is estimated, in China, that the small and medium-sized enterprise has created three in four job opportunities and contributed to over half GDP. However, the financing of small and medium-sized enterprise has long been in a tight corner, which does not match its contribution to our national economy. For example, the loan that the small and medium-sized enterprise gets is relatively lower; the financing channel is relatively single; the credibility of the small and medium-sized enterprise is getting lost and so on. The reason that makes the financing problems owes not only to the quality of the small and medium-sized enterprise, the macro-policy, and the banking system, but also to the function loss of our government. By taking a deep analysis of the current situation of financing in A County, the author summarizes the function omission, offside, and mal-position of the relevant government. Besides, according to the specific situation and the financing function of the government, the author proposes that the local government should develop a role in optimizing the environment, in strategic planning, in system construction and product supplying. Finally, the author takes furthur analysis of the government’s function performing in order to offer more help to the financing of the small and medium-sized enterprise.