Content area
Full Text
KEYWORDS
Small and medium-sized enterprise,
Financing system,
Strategy
ABSTRACT
Small and medium-sized enterprises occupy an important role in the modem market economy, but they have many insufficiencies in financing system, particularly with European debt crisis deepening, the macro economy downward pressure keep increasing, the financing system of SMEs encountered new difficulties, which seriously restrict the development and transformation of enterprises. Based on the analysis of the current situation and problems in SMEs, this essay explores the innovative financing strategies in the view point of preferential policies, legal system and financing institutions to optimize the financing environment, etc. Furthermore, it provides analysis of effective measures to upgrade the financing abilities to promote the sustainable development of small and medium-sized enterprises.
© ST. PLUM-BLOSSOM PRESS PTY LTD
1 Introduction
Small and medium-sized enterprises are important economic units in national development, however, according to statistics, almost 92.35% SMEs have funding gaps in varying degrees. They lack of the proper access of information and external resources. Their average life span is about 2 to 3 years, nearly 66.67% SMEs cannot survive for the sake of capital chain ruptures or difficulties. With the deepening of European debt crisis, the development of global economy is slowing down, the financial risk control elements increases, RMB is facing great pressure of appreciation, foreign trade exports suffocate, external survival environment of SEMs is worsening. However, in the internal environment, operating costs keep rising, market demand is recovering slowly, and overall business condition is not optimistic. Although, the government has given some support to SEMs, they still have the problems of single financing way, high financing costs and big financing gaps.
2 Analysis of the Existing Circumstances and Problems in the Financing System of Small and Medium-size Enterprises
2.1 The unsatisfactory indirect financing system of small and medium-size enterprises
2.1.1 The loan proportion from the four central banks continually decreased
The large commercial bank loans to small and medium-sized enterprises declined gradually in recent years. They concentrate on loan risk management. As a result, the credit approval authority has been tightened by commercial banks. Because the profitability of large enterprises is better and they have more mortgage assets, banks are willing to do research and marketing proposals for large enterprises, so it is difficult...