Evaluation And Analysis Of Financing Environment For SMEs Of Lin Yi City

Both in highly developed market economy countries and developing countrieswhich are still in the System Change time, the SMEs have become the backbone andan important force of the national economy. Since the reform and opening up,thevitality and growth potential of SMEs provide a major driving force for theincremental development of China’s economy, especially played an increasinglyimportant role in the creation of employment opportunities, the promoting oftechnological innovation, the increase of income, the economic growth Speed andquality and the comparative advantage of export products and so on. However, withthe increasingly fierce market competition, SMEs faced more and more problems,such as the unreasonable management system, the backward of technology, thefinancing difficulties and personnel shortages.As an important city in the Southern of Shan Dong province, Lin Yi city hasdeveloped rapidly, its private economy is very active and it has huge advantages inmarket, logistics and other aspects. As an important part of the national economy ofLin Yi city, SMEs have a great impact on the local economic of Lin Yi city. In recentyears, there are still some problems during the SMEs finance of Lin Yi city, such aslack of financing channels, high financing costs, irrational financing structure and soon. Recently, various measures has been taken by Lin Yi government to improve thedevelopment environment for SMEs financing. Therefore, it is very important tounderstand the current situation of the financing environment for SMEs of Lin Yi city.It’s not only good for the development of local SMEs, but also good for the furthereffective measures of improving the SME financing environment.The main line of this paper is the financing problem of SMEs. First, I defined theSME and introduced the current situation of corporate finance theories andresearches.Secondly, I analyzed the development and financing status of SMEs in LinYi city. Again, by building evaluation index system, I used the DM-AHP method toevaluate and analyze the current financing environment for SMEs in Lin Yi city.Finally, I studied how to optimize the local environment for SME financing, and putforward a more comprehensive strategy recommendations.