Research On Chinese SMEs New Financing Model

Small and medium enterprises(SMEs) have played an important part in improvingnational prosperity. Thus they have a special role in national economy. With the reforming ofindustrial structure and the marketization, the SMEs have encountered a great development inChina. However,the development of SMEs is not very smooth,financing problem has alwaysbeen in there way of their expanding.Therefor, at present it is very urgent that we need helpthem to get out of financing difficulty and have them developed.Firstly, this paper focuses on the definition of SME and enterprise financing, secondly itmake an analysis on SMEs’ characters and some traditional financing mode.Finally and mostimportantly, it tries to probe into three new ways of financing.There are many opinions andconclusions on how to solve financing problems,such as consummate legal system and buildfinancial institution whose main products are for SMEs.These are all good solutions but theimplementation of these measures has a long way to go under the marketcircumstance.Hence,the best way to alleviate the plight of financing in SMEs is to innovateand design new financial products and financing mode.Based on how and why its hard forSMEs to raise money,this paper concluded that the SMEs is in a disadvantaged position inthe relationship with the bank,and their credit is low.From this po int we tried to solve thefinancing problem by focusing on SMEs’interrelated enterprises and then analysis supplychain financing models.Then on the SMEs character of its great potential its high-techbackground,we studied the Private Equity and intellectual property rights pledge financing.At the end of this paper, I compared the traditional ways of financing with the three newmethod and come to the conclusion that innovation is a most feasible and effective solution.