Abstract

SMES are an important part of China's market economy. SMES can not only increase employment and stabilize prices, but also play an important role in promoting economic growth and maintaining balance of payments. At present, China's SMES are faced with few financing channels, high financing cost, poor continuous capital inflow, difficult to obtain long-term loans, low credit rating problems. By analyzing the causes of these problems, the government and enterprises formulate optimized policies, which is helpful to solve the financing problems of small and Medium-sized enterprises.

Highlights

  • SMES are an important pillar of China's economic development and have made contributions to China's economic construction

  • Medium-sized enterprises refer to enterprises with operating income of more than 5 million yuan, and small enterprises refer to enterprises with operating income of more than 500,000 yuan. [1]

  • Among all kinds of financing problems faced by SMES, the problem of small amount of financing and difficult to obtain long-term loans generally occurs, which leads to the shortage of working capital

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Summary

Introduction

SMES are an important pillar of China's economic development and have made contributions to China's economic construction. Due to financing difficulties and their own reasons, the development of SMES is hindered, which has a negative impact on China's economic development. This paper introduces the definition and characteristics of SMES. This paper analyzes the financing status of SMES, and expounds the financing difficulties of SMES. This paper explores the reasons for the financing difficulties of SMES. It is expected that through this analysis, the financing problems of SMES can be solved, to promote the healthy development of SMES

Definition of SMES
Financing Status of SMES
Financing Mode of SMES
Few Financing Channels
High Financing Costs
It is Difficult for SMES to Obtain Long-term Loans Due to the Small Amount of Financing
SMES are Small in Scale and Lack of Competitive Strength
High Operational Risk, Low Risk Resistance Ability and Lack of Good Credit
SMES Lack Government Support Policies
Imperfect Mechanism of Financial Institutions
Study on Countermeasures to Solve Financing Difficulties Within the Enterprise
Study on the Government's Countermeasures to Solve the Financing Difficulties of SMES
Findings
Summary

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