Research On Factors Influencing Financial Capacity Of Smes In Shaanxi

SMEs have now become an important part of our economy, not only play a main role inpromoting the development of China’s economy, but also have made great contributions toour labor force employment and technological innovation. But SME’s own small, low asset,poor growth, makes it difficult for SMEs get loans from banks and other financial institutionsto support, combined with the internal accumulation of SMEs, their "blood" limitedfunctionality, which have caused most of the SMEs facing financing problems. In China eachyear, accounting for about30%of SMEs closed down, among them the80%of enterprisesabove is a result of a shortage of funds. Financing problems have been the main factorslimiting the development of SMEs, if all of the financing problem of SMEs is not solved as animportant force in economic growth will result in unreasonable structure of economic growthas a whole, even affect the long-term and stable growth of China’s economy.SMEs in recent years has developed rapidly in Shaanxi Province, has become the mainengine of economic growth in Shaanxi Province. But as the situation of SMEs in other regions,Shaanxi equally widespread financing problems for SMEs, according to the survey,95%ofSMEs in Shaanxi face financial difficulties, financing risk for development and expansion ofSMEs in Shaanxi Province will no doubt be a huge threat. How to improve SME financingenvironment in Shaanxi Province, improve enterprise’s financing capacity, became one of themost important in the current work on supporting SMEs development.This is in such of background, research object in this paper is factors influencing SMEsfinancing capacity, with the guiding of modern financing structure theory, from angle offinancing structure, make a theory distinction and analysis on factors influencing SMEsfinancing capacity, and then using part samples data of SMEs in Shaanxi. Through empiricalanalysis on various factors influencing SMEs financing capacity for deep mining, through onShaanxi SMEs financing capacity effect factors of research, Finding out the causes offinancing difficulty of SMEs, and to serve as a basis from the enterprise, financial institutionsand advise the Government, improve the ability of SME finance in Shaanxi Province.The text is divided into six chapters, main elements are as follows： Chapter I introduce the background, purpose and significance of the research in thisarticle, research content, analytical framework, and primarily involved in the research.Chapter II mainly to define and elaborate the concept SMEs, SME’s financing capability,provides a comprehensive review to financing structure which is the core theory of the paper.Chapter III summarizes the status of SME and financing in Shaanxi Province, andconduct theoretical analysis the financing problems existing in Shaanxi. This chapter providedthe basis for the empirical analysis in the next chapter.The fourth chapter is the core content of this paper, based on financing structure theories,this chapter makes empirical analysis of the factors influencing SMEs financing capacity inShaanxi Province by using some of the related financial data of SMEs in Shaanxi Province,and then analysis and summarizes the results as a prepare for the recommendations.Fifth chapter puts forward recommendation of the reasons to make improve the ability ofSME finance in Shaanxi Province and countermeasures.The last part is the summary of this paper.