Financing constraints of Small and medium-sized enterprises (SMEs) in Northeast China

Abstract

Small and medium-sized enterprises (SMEs) are an important part of regional economies and play an integral role in encouraging development. When we discuss north-east China, it is often in reference to Heilongjiang, Jilin and Liaoning provinces. For historical reasons, the economic policy inclination in this area mainly points to public enterprises and state-owned heavy industrial operations. As a consequence, small and medium-sized non-public enterprises have been restricted and this negatively impacted localised economic activity and development to a certain extent. Financial constraints naturally restrict the development of small and medium-sized enterprises, as is the case in north-east China. In this paper, focus will be placed on SMEs and the nature of economic systems in the aforementioned region. Through extensive research and analysis of enterprises, financial institutions and guarantee companies, this paper will serve as an intimate analysis of the financial status in addition to the difficulties faced by SMEs in north-east China. In turn, It will also make appropriate suggestions or identify specific counter-measures.