| SME (small and medium enterprises) in China is an important force of economicand social development, which create the equivalent of60%of GDP and the value ofproducts and services, and provide more than75%of urban jobs, and SME trulybecome the practitioners of reform and opening up, the economic developmentpromoters, the creators of social wealth and the builders of a harmonious society. Reportabout the development of Chinese enterprises in2007discloses that the number ofSME in China reached more than42000thousands at the end of October in2006,accounting for99.8%of the total number of the enterprises, of which include more than3,8000thousands of individual businesses,which created the final products and servicesaccounting for58%of the gross domestic product, accounting for50.2%of tax revenue,employing75%of the urban employed population and75%of the labor forcetransferred from rural areas.The division criterion of SME is dynamic, the size definition of the SME issomewhat different in different countries and regions and in different historical periods.Many countries have both qualitative and quantitative definition of SME. we had adjustthe standard definition of small and medium enterprises about eight times after foundingof our country, but all is defined quantitative standard as the index, it can’t fully reflectthe organizational structure condition of China’s industries. In this essay the Bostonmatrix and policy guidance matrix for are adopted as the standard of classification, andcombined with the standard of enterprises law to make a further analysis of thefinancing situation of SME, which will help to see what kind of business havedifficulties in financing, and why there will be difficulties in financing so as to find theremedy.In general there are two sorts of methods of financing for SME that include theinternal financing and the external financing, the external financing can be divided intodirect financing, indirect financing, policy financing. Factors affecting the financing ofSME have internal and external factors. Internal factors is that the credit of SME areinsufficient,business model and mode of management are not standardized, risky business, which led to afford the high cost of financing without capabilities; externalfactors mainly reflected in the financing environment.It’s considered to be a worldwide problem that SME have difficulties in financingduring the process of the development. The famous "Macmillan Gap"(Macmillan Gap)is that the long-term capital supplying for small and medium enterprises is not adequate.it was widely believed SME have difficulties in financing due to asymmetricinformation. Asymmetric information is reflected in two aspects: the informationasymmetry between banks and enterprises and the information asymmetry betweenbanks. Through studying the financing model of the United States, Britain, Japan,Germany and other countries, we can learn from the those mode of financing.In the part of evidence I choose44from526companies listed in the board of SMEwhich include the fiscal data from2006-2008so as to detect the results of the capitalstructure and financing behavior when adopting the patterns of external financing forSME. Model indicates: firm size and leverage are positively correlated, and they showstrong significance. The income level and asset-liability ratio is negative, the more thecompany earns, the smaller the company loans from the bank, that is mean the corporateadopt the model of internal financing and less use of the model of external financing.Growth is not correlated with the leverage ratio, so companies at different stages ofgrowth should adopt a different financing model,for example they can use the internalfinancing and also can utilize the different combination the model of internal financingwith the model of external financing. Risk and asset-liability ratio is positively related,especially is significantly positively correlated with the long-term debt and bank loans,is irrelevant with short-term liabilities. |
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