Current Status and Possible Solutions to the Financing Difficulties of Small- and Medium-sized Enterprises in China

摘要

The reform and opening-up policy in China has resulted in a good environment for the development of small- and medium-sized enterprises (SMEs), especially the burgeoning SMEs in the private sector. SMEs have been playing an important role in China's economic reform and development and, to some extent, have become a growth engine in the Chinese economy. However, SMEs are still facing many financial difficulties. Thus, in the present paper, the current financial status and financial environments of SMEs in China are studied and compared with several of the western countries, and a capital-cycle-based capital utilization pattern is proposed, that is, to increase government support to control the capital investment of the enterprise, take advantage of the core competencies to ensure the full capital utilization of the enterprise, screen life cycle of the enterprise to reasonably withdraw the capital. Meanwhile, some related cases are illustrated. In the end, some concluding remarks are drawn and some suggestions are proposed.