The financial situation of Chinese enterprises

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Minor Enterprises Financing Problems Research


Small and medium-sized enterprises in China's economic and social development plays an irreplaceable role in financing, but weak asymmetric position, financing constraints have become a bottleneck restricting the development of SME. Small and medium-sized enterprises in China's economic and social development, in the adjustment of economic structure, and the active market and increase employment opportunities, developing the local economy, increase the fiscal revenue plays an important role.

However, the problem of financing difficulty has been perplexing the development of small and medium-sized enterprises. At the same time, combine with the current financial crisis in the background, and analysis the problems of financing small and medium enterprises. SME financing in the direct financing channels are narrow, the financing cost and financing credit risk is high, low, affected by the policy of discrimination, social financial services not harmonious phenomenon. Learn about the causes of SME financing dilemma for many reasons, including small and medium-sized enterprise the inadequacy of oneself, financial institutions, small and medium-sized financial institutions monopoly, the lag of development, to protect the development of laws and regulations are not perfect, the capital market is not perfect etc. To solve the problem of financing SME, government needs to learn foreign experience, improve and implement the financial support for SME, the establishment of SME credit guarantee system. This paper analyzes our country small and medium-sized enterprise financing present situation, elaborated our country small and medium-sized enterprise financing for a variety of reasons, finally to alleviate the financing difficulties of SME in China problems countermeasures and suggestions.

Key words: small and medium-sized ,enterprise loan financing ,credit

Minor enterprises take large function on promoting technology, increasing employment, and export. So far, the total amount enterprises are 40 million, and provide 70% employment opportunities, and the industry value and tax occupy 60% and 40%. However, the current capital of minor are not enough, financing problems have been the focus of society. Because minor enterprises are small, have low degree industry, low profit, and weak competition ability and credits, they are not easy to get financing problems. So some minor enterprises are still place in low stage of financing, they have to get capital from non-government which seriously disturb the development of minor enterprises and companies’ development can’t fit national economic development which limit enterprises’ development. According to the situation of enterprises financing, we should analyze reasons from enterprises themselves and outside environment. We should improve modern enterprises institutions, perfect indirect financing system, and expand direct financing channel. Enterprises should constantly innovate. Government should regulate and control economic responsibility, mediate social financing channel, develop market function, and collect more capital in order to encourage minor enterprises develop. This paper analyze and research enterprises’ financing situation and financing theory through collecting domestic and foreign papers, books, magazines, and internet. Besides, the paper suggests advice to solve financing problems. There are three parts of this paper.

First Part: the function of minor enterprises in China economic development. Second Part: Situation of Minor enterprises financing. Third Part: Analyze reasons of minor enterprises financing difficulties through cases. Fourth Part: Through analysis of enterprises financing, this paper give suggestions.

一、 The functions of minor enterprise in the development of economics. (一) The definition of minor...
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