Research On The SMEs Financing

Over the years, the financing difficulties plagued the SMEs of our country. There are many reasons for the financing difficulties of SMEs.First of all, the level of industry development in our country is in the middle stage now. It makes our enterprises need more productive resources than other countries’to produce the same GDP. And many SMEs have low level of technology and management ability, its profitability is not enough and it is hard to rely on internal accumulation to meet their funding needs. Therefore, they need external financing very much. Because the development of direct financing in our country is very hysteretic, the bank will be in charge of meeting the financing needs of SMEs. But face to the huge enterprise assets of China, Frankly speaking, the bank cannot meet the financing needs of most SMEs. And encumbered by the outdated bank organizational structure and credit technology in our country, the goal is harder to achieve. So it makes the phenomenon that the ratio both of endogenous financing of SMEs and the loans to SMEs are very high in our country. So to solve the problem of SMEs financing, we need to promote the risk consciousness and management level of the SMEs, to make the industrial upgrading, improve the SMEs’profitability and the level of capital accumulation.Second. Compared with the developed markets, the development of direct financing channel in China is very lag. Therefore, we must develop the direct financing channel, enhance the use efficiency of idle funds, facilitate the reform of financial liberalization, build the multi-level capital markets and make them play their role fully. Through product innovation of the bond market to broaden the channels of SMEs debt financing; Through the development of risk investment to improve the capital support for the high-tech SMEs; Through perfecting the market mechanism of share out bonus and improve the rule of law, perfecting intermediary management, reducing the information asymmetry phenomenon to create a good condition for the reform of stock issuance of registration system, and to provide venture capital an exit channel and increase the chances of equity financing for SMEs.In addition, in terms of bank financing, while the support for SMEs from China’s banking industry is relatively high, but the details are still can be improved, such as innovate the loans technology to SMEs, innovate the corporate governance structure of bank, innovate the mode of mortgage guarantee, etc. Finally, we should also put an eye on the developments in the field of SMEs financing, make full use of the development of technology to facilitate the financing of SMEs. Only by broaden the channels and joint effort can we solve the problem of SMEs financing.