A Study On The Financing Problems And Countermeasures Of Small Enterprises In Yangzhou City

Under the shadows of the latest global financial crisis in2008as well as the political unrest in Greece, individuals have showed a decreasing confidence in Euro which leaded to a slow recovery in the global economy and a risky economic downturn. In the recent times, the domestic economy is still in the bottom wave period which is indicated by the slow economic growth, the weak foreign trade export as well as the insufficient domestic demand. As a most active economic entity, small and micro businesses have played an important part in the national economic growth and development as it is an important platform for enterprise business growth, employment promotion, revenue increase, innovation of science and technology, steady and rapid economic development as well as social harmony and stability. However, as the influence of domestic and international economy is reducing, small and micro businesses have encountered problems such as underemployment, decreasing orders and financial problem. Among the above difficulties, the financing is extremely vital for the sustainable and positive development of small and micro businesses. If the financing problem has not been addressed appropriately, there will be a breakage in business capital chain following by production stagnation and bankruptcy as well as the slow economic growth and the increasing unemployment which impact badly and profoundly on the stability of the whole society.This paper firstly reviews the literature about the financing problems occurring in domestic and overseas small micro enterprise, following by the concept definition of small and micro businesses. Secondly, a questionnaire survey has been conducted in Yangzhou to understand the basic situation of small and micro businesses such as producing, operational and financial condition. Thirdly, the data of survey analyzed results in the sample enterprises are facing the problem about the limited financing channels, the selection of bank as the preferred indirect financing, active folk financing with a certain degree of risk as well as "financial" mechanism which cannot meet all the financing needs following with the high financing cost problem. In order to achieve the efficient financing among SME, there are several recommendations as followings:enhancing firm’s capability; extending financing channels; ensuring the unblocked channel of banking institution; standardizing the channel of private financing to reduce risks; using "similar financial" institutions to financing appropriately; broadening the direct financing channel as well as increasing endogenous financing proportion.The methodologies of this paper mainly adopt the method of literature review on domestic and foreign articles, the questionnaire design and survey on small and micro businesses in Yangzhou area with a statistical analysis as well as the induction research and deduction research.The innovation of this article is actually based on Yangzhou area, based on the analysis and study of a large number of statistical data. In order to achieve the efficient financing among SME, there are several recommendations as followings: enhancing firm’s capability; extending financing channels; ensuring the unblocked channel of banking institution; standardizing the channel of private financing to reduce risks; using "similar financial" institutions to financing appropriately; broadening the direct financing channel as well as increasing endogenous financing proportion.