Research on Financing Problems of Small and Medium-Sized Enterprises

Fan Wang

Abstract: Small and medium-sized enterprises have flexible management methods and fewer restrictions on establishment, which play a key role in increasing employment, maintaining social harmony and stability, and promoting economic development and technological innovation. However, Small and medium-sized enterprises have more problems in financing because of the small scale of operation, the imperfect internal management system and low transparency of financial information, for example, there are fewer ways to raise funds. These problems have seriously hindered the development of enterprises. How to solve the financing dilemma and promote the development of enterprises has become a key issue of national concern and a hot topic discussed in the 2019 sessions. This paper combines the financing status of the development of Small and medium-sized enterprises in China, analyzes the reasons for the difficulty of financing from the aspects of internal management system and external credit environment, and provides some suggestions around the enterprises, banks and government.

Keywords: Small and medium-sized enterprises, financing issues, external financing, small and medium commercial banks