The Cause Analysis And Countermeasures Of Financing Difficulty Of The Chinese Small And Medium-Sized Enterprises

Recent years,China’s small-and-medium-sized enterprises(SME) have been developed rapidly,which not only become the important major power to accelerate the domestic economy growing up in a quick、healthy and consistent way,but also present the strength of life power,play the more important role in terms of adjusting the structure of domestics economy, extending social employment, developing local economy, increasing the financial income,training entrepreneurs team.However, from the effective needs point of view98%of SME are lack of sufficient loan sources less than20%.According to a survey,funding constraint is considered to be the biggest obstacle to enterprise development by70%of the SME.However bottleneck of funding problems are increasingly restrict their development.Our top priority is how to solve the issues such as SME shortage of funds and financial institutions’s risk management.Although many countries in recent yeas adopted to improve the financing situation of SME,by judging the present situation of SME in China,a comparatively perfect and muti-level SME funding system has not yet been set up.Neither direct nor indirect funding can solve the issue by the roots.Currently, many experts have studied SME funding problems,and examined the reasons with some proposals put forward.By analyzing the existing state of the credit funding in XINTAI city and the pros and cons of all kinds of the funding channels of the SME. The main contribution of this paper is to take the credit operation of SME as an example and make the analysis from the perspective of a specific manager. Results of this study are a direct guidance for both SME and the commercial bank.The first chapter introduces the research background significance of this paper and the current main research on SME.The second chapter presents the basic theories and the standards of the SME defined by the bank. The third chapter introduces the financing of small and medium enterprises in XINTAI City,The reason that the SME enterprise present the difficult is various,not only because of the financial system imperfection, but also the flaw of internal management mechanism of the enterprises.Through above-mentioned analysis,the study clarified the causes of the financing difficulty of the SME,and puts forward the countermeasures to change the status of difficult financing in SME from different points of view of enterprises, finance organizations and government,for example:establishment of the mid-and-small bank.