The Financing Difficulties Of SMEs And Countermeasures Research

The theory and practical departments are highly concerned on SMEs, which are regarded as "strong bit vulnerable" groups in the social and economic development for years. The disadvantage of SMEs in financing has attracted more attention, but the theory do not find a good way to solve the financing gap of SMEs. Now, China is in a critical period of economic transition, with great pressure of employment. Developing SMEs plays a very important role to ease the pressure of employment in our country. So how to do the research of solving the financing problem of SMEs in the development becomes a hot topic, which is of great significance to promote overall social and economic development in China.This paper first explains the concept of SMEs and financing, reviews the theory of financing, finding that information asymmetry is the main cause of SME’s financing risk, but the lenders can observe the characteristics of enterprises to reduce this risk, these characteristics are just the factors of SMEs financing capacity. Then it analyzes the current situation of SMEs financing、problems and the reasons. And analysis the influencing factors of SMEs financing capacity by theoretical level, including macro and micro aspects. Based on this,we can find out which factor has an impact on financing capacity through an empirical test. Finally, according to the theoretical analysis and empirical results, we can propose countermeasures and suggestions to solve the problem of SMEs financing.Empirical part, this paper chooses a panel data of61SMEs in Zhejiang province in from2009to2013from Shenzhen SME board. Using the asset-liability ratio of SMEs as the evaluation of SMEs financing capacity indicators and selecting9influencing factors based on previous studies. Through selecting an appropriate estimation methods and econometric models, we can identify the real factors that affect the financing capacity. The results show that firm size, return on equity, growth, asset collateral value are positive correlation with the financing capacity; internal corporate retained earnings,risk control are negative correlation; while turnover capacity, the unique of product and non-debt tax shield do not constitute a significant impact on the relationship with financing capacity.