Study Of Small And Medium-sized Enterprise Financing Problems Based On P Company

During the process of the development and maturity of domestic market economy, small and medium-sized enterprises(SMEs) have been playing irreplaceable roles particularly in terms of enhancing marketing vitality, boosting economic strength, increase jobs, promoting technological development etc. However the features of SMEs themselves and the restrictions of external environment confront SMEs with financing issues all along, which has become a major obstacle for the sustainable development of SMEs. With the expansion and deepening of market economic reform, the government begins to pay attention to the financing issues of SMEs and has issued a series of reform measures which however are not idealistic in practice. Ever since 2008 the equity economy has been hit hard by the economic crisis and has been in a sluggish state, which compounded the difficulties SMEs face in terms of financing. Meanwhile the extensive external environment change for SMEs makes the financing issues for SMEs even complicated.As the scales of SMEs are small, the technological level is low and the operation management level is weak, which leads to the situation where disorders usually happen during their operations. What s more SMEs usually concentrate in the labor intensive and common manufacturing industries, which make them under various restrictions that impede their development and make their profitability uncertain. As a result it makes it difficult for them to finance internally. The lack of innovative financial institutions, incomplete financial management, low transparency and low credit awareness make external financing such as bank loans extremely difficult. Through the analyses and explorations of the financing status and the current financing issues, this thesis focuses on the reasons for difficult financing for SMEs and combined case analysis and comes out with some constructive suggestions for the improvement of the status SMEs financing. It is hoped that these suggestions can be of help to SMEs in general in terms of financing.