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Financing of SMEs causes and solutions

Author: HeHui From: www.yourpaper.net Posted: 2010-03-02 04:58:35 Read:

Paper Keywords: small and medium-sized enterprises; financing difficulties; reason; policy recommendations

SME development, regional economic development, increase employment opportunities, ease the employment pressure, maintaining social stability, and increase revenue to play an increasingly important role. However, the "financing" has been a "bottleneck" restricting the development of small and medium-sized enterprises. How to solve the financing difficulties of SMEs, effectively easing the tension of finance for SMEs has become a hot issue of concern from all walks of life.

According to statistics, more than 4,200 million registered enterprises in the business sector, small and medium enterprises has more than 40 million, accounting for 99.6% of the total number of enterprises. The end of 2008, statistics show that the SME contribution to GDP of more than 60% of the contribution to tax revenue more than 50%, exports 68%, 82% of new product development for the country to provide more than 75% of urban jobs. SMEs in China's economic development plays a decisive role. However, since the second half of 2008, due to the international economic situation deteriorated sharply, SMEs have closed down 40%, 40% is the edge of life and death struggle, in order to overcome this, SMEs must get tremendous support.
However, most SMEs are facing difficulties in financing the plight of small and medium-sized enterprises is difficult to obtain the funds needed liquidity as well as technological innovation, infrastructure, shortage of funds as the main bottleneck restricting the development of small and medium-sized enterprises. In China, the financing difficulties of SMEs, is an indisputable fact.

the financing of SMEs

(A) internal reasons
Small and medium enterprises small, the benefit is unstable, it is difficult to form
attractive credit funds
Compared to large enterprises, small and medium enterprises industrial level is low, the foundation is weak, small-scale, performance is not satisfactory, weak to withstand market. Individual SMEs but also malicious or withdrawal of funds, delinquent, shell operations, the vacant bank debt, resulting in the loss of credit funds, resulting in generally lower the credit rating of SMEs. The effectiveness and safety of the funds, the bank lending cautious.
SME management there are many weak links, weak anti-risk ability
Most SMEs lack of management experience and management are not standardized, the foundation is weak, the general lack of a standardized corporate governance structure, relatively large operating randomness. Coupled with the financial system is not perfect, the the opaque financial position, financial statements are not perfect, can not provide useful information to the financing side.
SMEs are small-scale, less mortgage assets, secured financing difficult
The different extents Land Bank only accept clear property rights (real estate and fixed assets) mortgage, and most SMEs, due to less accumulation of fixed assets, and in the interests of security, guarantee conditions of insufficient assets, some companies affiliated collective joint co-operative, , ownership of the plant, such as the question of ownership is unclear, and ultimately made loans far can not meet the needs of enterprises.
(B) external causes
A system of commercial banks affect the financing of SMEs
First, the state-owned commercial banks in the transition to the market and commercialization for the prevention of financial risks, the state-owned commercial banks are more willing to "wholesale" credit loans to large enterprises, small businesses do not want to "retail", because so that the average cost of the retail lending is relatively high, the lower the cost of lending to large enterprises "wholesale", so, banks reluctant to loan to SMEs.
Existing risk prevention mechanisms and accountability mechanisms to demand too much too strict, the bank is willing to sacrifice the market, we can not risk a serious impact on the enthusiasm of lending to small and medium-sized enterprises.
Third, China's existing credit system is based on the state-owned commercial banks as the main body of the main suppliers of finance for SMEs - the relative lack of local small and medium-sized banks, policy banks also lack of specialized services for small and medium-sized enterprises.
(2) the lack of multi-level capital market financing channels for SMEs is too narrow.
China's SMEs considerable proportion of sole proprietorship and partnership enterprises, forms of business organization decided not to direct financing in the capital markets. But even if the corporate system of small and medium-sized enterprises, though they have the right to direct financing in the form of bonds and stocks to the community, but our second board market has not yet started, difficult market and the issue of the bond financing, the only private capital and bank credit. ке
Of the SMEs in the lack of innovation. Most of the Western countries to set up a special national SME financing channels, such as the establishment of SME investment company specializing in short-term working capital loans of commercial banks and specialized in financial services for SMEs. Key
Financial markets open and innovative financial instruments is lagging behind the needs of enterprise development, notes for SME customers of the market, accounts receivable financing, leasing and other financing services also underdeveloped.
SME credit guarantee institutions small scale, risk diversification and lack of compensation system
Credit guarantee for small and medium industry development is difficult to meet the needs of the majority of small and medium enterprises to enhance the ability of credit; credit guarantee institutions funded by the government usually only in the beginning of planning for a one-time financial support, lack of follow-up compensation mechanism; private security institutions by ownership constraints, only alone bear the risk of the guaranteed loan, and can not form a sharing mechanism with the collaboration Bank. In addition, laws and regulations related to the credit guarantee industry construction is lagging behind, and also to some extent affected the normative development of credit guarantee institutions. According to the survey, the proportion of SMEs unable to implement the guarantees have been refused credit of up to 23.8%.
4. Absence of relevant legal system, the normal market order is difficult to establish
"SME Promotion Law" promulgated and implemented, but still need a series of supporting policies and regulations Ordinance to refine. At present, China is neither related to credit the legal system, nor to establish a unified corporate and personal credit information system for the whole society, but also the lack of a unified authority management departments, leading to relevant policies and the lack of effective coordination and convergence, credit guarantee institutions run disorder, support for small and medium-sized the legal system of the lack of development of financial institutions. In addition, law enforcement environment is also very poor, some local governments for their own local interests, acquiescence or connivance evasion of bank debt.

Second, to address the financing of SMEs strategy proposals

(A) small and medium enterprises to strengthen self-management level, efforts to improve the creditworthiness
Small and medium enterprises to continuously improve the management level, improve the corporate governance structure, the establishment of the system can accurately reflect the financial situation of enterprises, increase financial transparency. Efforts in product innovation, improve market competitiveness, and enhance their strength. At the same time, it is necessary to firmly establish the idea of ??borrowing will also enhance their own sense of credit.
(B) to develop small and medium-sized enterprises specialized banks
Regional specialized banks, its main feature is the business objects mainly of small and medium-sized enterprises in the region, the main scope of business in the region's small and medium enterprises financing short-term and long-term capital, and the range of financial services. Higher operating costs due to the large banks, in order to improve efficiency and save costs, the government should encourage the development of regional-oriented small and medium-sized enterprises specialized banks, take the initiative to remove the obstacles to the establishment and promotion of small and medium-sized financial institutions, and work to develop the necessary preferential policies to create a good environment for their development. ке
(C) should make great efforts to the development of multi-level capital market and broaden direct financing channels for SMEs
Bank credit should not be impossible to solve the problem of all the different stages of development financing for SMEs. From the practice of international and domestic direct financing through the capital market, is another effective way to solve the financing difficulties of SMEs. Speed ??up the construction of multi-level capital market, cultivating a wide range of small and medium-sized enterprises financing system, as soon as possible GEM market in line with China's national conditions and the Third Market, foster the development of venture capital funds, venture capital firms, private equity funds and other market players, technological innovation, venture capital and capital markets form a positive interaction situation, to meet the funding needs of SMEs, especially scientific and technological innovation of SMEs.
(4) according to actual situation around financial innovation
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