Reseach On The Financial Supporting System From The Government To SME Of Hebei Province

In today’s increasingly competitive science and technology, technology-based SMEs hasbecome the main carrier of technical innovation and an important driving force of economicgrowth and plays an important role in the promotion of scientific and technologicalachievements, stimulating employment, building an innovative country. SME is characterizedwith high-risk financing, strong stage venture and heavy dependent on capital financing.Unlike traditional modes of SMEs, this type causes difficulties in financing, limiting thedevelopment and growth of enterprises. Although the SME belongs to market segments, itshigh risk, its role as a future guidance and its exemplary role for modern industrialtransformation make it a quasi-public goods that the government needs to provide thenecessary support for its financing and development. Therefore, a study from the perspectiveof government support for SME financing is of strong theoretical and practical significance.This paper is focused on the financing needs of SME and government supply in HebeiProvince. The research is conducted in the form of a questionnaire on financing needs of SMEin Hebei Province, combined with an analysis of the government support policies aimed tofind the inadequacies of the policies. On this basis, this paper aims to provide somesuggestion to solve the problems by reference to the successful experience of foreigngovernment support for SME financing. In the final section, the paper discusses theoptimization of the Hebei provincial government support for SME financing and elaboratedon the implementation of the financing guarantee insurance.In the process of the analysis, this paper proposes the establishment the insurance ofSME financing led by the Hebei provincial government. It means that the government canimprove the financing guarantee insurance to facilitate corporate financing funds, to betterpromote the development of SME’s. It is feasible to solve financing problems through theestablishment of corporate financing guarantee insurance and also it is the innovation of thispaper.