A Research On The Development Dilemma Of Chinese Small And Medium Enterprise Based On The Analysis Of Financing Model

Due to low barriers to entry, fast growth speed, high-margin industry, coupledwith a high degree of industrial relevance, The real estate industry is bringing itsannual direct and indirect economic benefits to promote Chinese national economysteadily, and it has become an important force in the continued growth. small andmedium-sized real estate enterprises(SMREEs) are overwhelming the share of theindustry in terms of both quantity and sales, but from the current situation, ChineseSMREEs have difficulties to become bigger and stronger, the fundamental reason isthat the real estate industry itself is a capital-intensive industry, and its developmentprocess throughout the project will require substantial funding, and this is preciselythe weak point of SMREEs, they are facing more severe financing difficulties thanlarge enterprises do.The reasons for the phenomenon mentioned above as follows: on the one hand, theentire industry is currently dominated by bank credit because of Chinese currentcapital market imperfections. SMREEs are having poor bargaining power in theprocess of bank loans, and it also restricted by other financing manners, such aspublic financing, issuance of bonds, trust funds.on the other hand, because of itsweakness with born, irregular internal management, difficulty to provide sufficientsecurity, SMREEs are not favored by external investors. Overall, the developingpredicament of SMREEs is mainly caused by its financing dilemma, how to find aneffective response to this dilemma will be directly related to the future development ofthe real estate industry, thereby affecting the country’s sustained macroeconomicstability, the study of SMREEs’ financing model will have a great practicalsignificance.Theoretical research and case study method are combined in use throughout thispaper. We discuss and explore SMREEs’ financing model particularity on the basis ofits current development situation, to solve the developing predicament of SMREEs,proposing to build a diversified financing model as the core, relying on the supportboth from government and SMREEs itself.