A Study On Financial Difficulties And Supports Of Chinese SMEs

Small and medium-sized enterprises (SMEs) have played an unsubstitutable role inbooming market, improving employment, expanding exports and prosper innovations.They are a solid pillar of the national economy. However, the financial difficulties of SMEshave always been the obstacles which hold SMEs back from rapid development.The governments, the financial institutions and nonofficial organizations of differentcountries are making various efforts to break the dilemma. Though developing countriesfall quite behind, developed countries are truly team leader who have accumulated a lot ofapplicative experience. Their financial systems, law environments, operational cases andother successful theories deserve comprehensive studying. In some of the European orAmerican countries, government institutions have nonfinancial organizations as strongsupports. They cooperate well to create a comfortable market environment for SMEs tocompete and develop. For example, government set special laws, regulations and rules forthe sake of SMEs. A lot of financial service companies are encouraged to appear, such asfinancial guarantee agencies, rating enhancement firms and etc. They stick to their initialaims and work well.In China, financial system is mainly comprised with state-owned giant commercialbanks. Financial resources are highly centralized. When doing credit loan businesses,commercial banks have a serious discrimination on SMEs. Since I have been working in aleading state-owned commercial bank for several years, I have the opportunity to track thefinancial problems of SMEs. The problem of financial difficulties of SMEs is anything buta new topic. Why I choose to do a further study on this is because state-owned giantcommercial banks do need to update their business strategies when confronting withserious competitions coming from home and abroad. I am trying best to put forward sometheoretical and practical advices. The thesis consists of four parts. The first one is a general introduction of financialenvironments and conditions of SMEs. The second one is a systematic description of threemature SMEs’ financing theories. The third one is a vivid picture of successful modelsfrom mature developed countries. The last but not the least is the sharing of Bocom’s case.Bocom is the fifth largest commercial bank in China. It can be a good representative oftraditional Chinese state-owned large commercial banks. In the case, I will emphasize onthe operational rules and practical experience.Many numerical and theory analysis are applied in the thesis. All trials are made inorder to put forward useful and applicable suggestions.