Study On SME Financing Difficulty

Small and medium enterprises, the most important part of national economy, contribute to the economic environment with coordinated, stable, and sustainable influence. Since20century, Small and medium enterprises have developed rapidly and enormously and become an important force in China. However, Small and medium enterprises were always trouble with financing problem. Nowadays, China has been in a transition period. In addition, small and medium enterprises is the fundamental force to raise national life quality level, reduce job pressure, and stabilize society. Obviously, financing problem has become the restriction for healthy development of small and medium enterprises.This thesis used pecking order theory, trade-off theory, MM theory, and business cycle theory. Meanwhile, this thesis used documentation method, case analysis method, comparison method, and summary method. Mainly, this thesis analyzed external environment and internal environment that caused existed situation; used Harbin Jindu restaurant case to research the method to solve financing problem and create different financing channel.According to the research of financing problem of small and medium enterprises, we could find that small and medium enterprises’ weakness were low anti-risk ability and small scale capital. That was why banks didn’t provide loan to them. On the other hand, the creditor had low trust with small and medium enterprise for risky turnover of capital. Above all, that were the reasons why I did this research.Up to2011, there were4.2million small and medium enterprises in China, which were occupied99%of whole Chinese enterprises. Furthermore, small and medium enterprise support job positions as1.43times as large enterprise. Beyond all doubt, small and medium enterprises had improved the national economic development with huge contributions. There is no excuse to make financing problem become a constant problem. Solving the financing problem will be very helpful to Chinese development.