Where Is The Way Of Financing For Smes?

Small and medium enterprises can not regard listing as the only life-saving straw. To solve the problem of financing difficulties for SMEs, it is necessary for the whole society to work hard. The special correspondent: Chen Wei's financing of small and medium-sized enterprises: how difficult is it to say that the number of SMEs in China accounts for more than 90% of the total number of enterprises. The total output value and profits and taxes of SMEs account for about 60% and 40% of the whole country. In circulation, SMEs account for more than 90% of the total retail outlets nationwide; SMEs also provide about 75% of urban employment opportunities.

In the rapid economic growth since the 90s of last century, 76.7% of the new industrial output value was created by small and medium-sized enterprises.

At present, more than 80% of the output value of food, leather, sports goods, plastic products and metal products, and more than 90% of the output value of timber and furniture industry are created by small and medium-sized enterprises.

However, hidden behind this series of inspiring macro data, many small and medium-sized enterprises often have to face financial crises because of the difficulty in financing.

How difficult is it for small and medium-sized enterprises to raise funds?

From the State Development and Reform Commission (State Development and Reform Commission) in the province of China's small and medium-sized enterprises to develop better, more credit guarantee institutions in the province, we can see a spot: the proportion of small and medium-sized enterprises because of the failure to implement the guarantee is 23.8%, plus 32.3% because of the failure to implement the mortgage and refused to lend, the rate of refusal to reach 56%.

The situation in the province is still so, the whole state of the country we can imagine.

The obstruction of normal financing channels will inevitably breed the prosperity of abnormal financing channels, which is great harm to the national economy.

It is a common problem faced by small and medium-sized enterprises all over the world that financing difficulties are difficult and difficult to find. Even developed countries with abundant financial resources are no exception.

So, what causes the financing difficulties of SMEs?

Where is the difficulty of financing?

Zhang Yiping, director of Beijing SME Service Center, said that financing difficulties of SMEs is a worldwide problem, but it is even more prominent in China, including enterprises, banks, policies, systems, concepts and many other reasons.

Dr. Wang Yisi, a leading member of the Chinese Academy of Social Sciences "multi level capital market research" research group, believes that the main problem of SMEs' financing lies in the fact that SMEs rely heavily on self financing and bank loans, and lack of external equity financing channels.

The former constrains the growth speed of enterprises. The latter not only concentrates pressure and risk on banks, but also gradually increases the cost of borrowing and becomes the pressure of enterprises. At the same time, the capital structure of SMEs is unreasonable.

Daniel Chan, general manager of Shenzhen Xuan Huang pioneering Cci Capital Ltd, said in an interview with reporters that the lack of a sound nationwide credit system is a key reason for the financing difficulties of SMEs.

This imperfect social credit system leads to higher information asymmetry, thus increasing the financing cost and bank credit cost.

He also pointed out that the banking system is highly centralized and lacks suitable small and medium sized banks to provide financing services for SMEs. This is also one of the institutional reasons leading to the financing problem of SMEs in China.

Yang Yi, general manager of the new China University software Tianjin branch, believes that lack of funds is still the primary problem that restricts the further development of SMEs in China. One of the important reasons is the lack of effective financing guarantee.

He also believes that SMEs in China are not familiar with the financing operation personnel who are familiar with domestic and foreign capital markets.

On the other hand, commercial banks believe that some non-state-owned SMEs have relatively low operating efficiency, and credit is generally not high.

At the same time, because of the characteristics of small and medium enterprises loan, such as the amount of filial piety is high, the time is urgent and so on, the management cost of loans to SMEs is relatively high.

In addition, the financial reporting system of some small and medium-sized enterprises is backward, the information is opaque, and there is a lack of financial statements and good business performance confirmed by the audit department, which increases the difficulty of the bank's examination of the financial information of the enterprises, and the risks faced by the banks are relatively large.

These are important reasons why SMEs are unable to obtain financing support from banks.

According to the statistical analysis report issued by the people's Bank of China on the financial system of small and medium-sized enterprises released in May 21, 2004, the financing difficulties of SMEs have both policy and legal reasons. There are both reasons for bank governance and business expansion, as well as the reasons for the management and paction habits of SMEs. There are both reasons for the lagging behind of capital market and the development of financial market, as well as the reasons for the construction of social credit system.

But the deep-seated reasons are institutional obstacles and institutional innovations in the pitional period.

Therefore, there are many reasons for the financing difficulties of SMEs in China.

The financing problem of SMEs is, on the surface, narrow financing channels, and the underlying reason is institutional barriers.

With the improvement of China's marketization and the change of economic and trade environment at home and abroad, the problem of financing difficulties of SMEs will be solved to some extent, and new situations and characteristics will also emerge.

Therefore, systematic countermeasures should be taken to solve the financing difficulties of SMEs in China.

Temporary cure is more effective.

As mentioned earlier, the financing difficulty of small and medium-sized enterprises is a worldwide problem, resulting in many reasons.

Therefore, in order to solve this problem, we need the joint efforts of enterprises, financial institutions and the government.

Daniel Chan believes that we should first establish a specialized SME loan department in state-owned commercial banks, attach importance to and guarantee the financing operation of SMEs from the bank level, or allow state-owned banks to have greater interest rate floating rights when lending to SMEs, so that the benefits and risks of bank loans can be effectively linked to banks and guide banks to lend more to SMEs.

Secondly, it is necessary to improve the financing guarantee mechanism of SMEs, to establish SME loan guarantee institutions under the participation of the government, and to provide guarantee for SME loans.

He also suggested that the state should formulate and promulgate laws and regulations on SME credit guarantee as soon as possible.

Yang Yi believes that solving the problem of financing difficulties for SMEs requires the concerted efforts of the whole society. The key is to form a normal economic relationship between enterprises, financial institutions and the three governments.

There is an urgent need to build an effective credit collection, evaluation and distribution system and establish a strict system of breach of trust, so as to solve the problem of credit recognition in the issuance and listing of corporate bonds and bills, and actively promote the diversification of channels, ways and means, standardization and rationalization of financing for SMEs.

In the near future, we need to take a series of effective measures, including expanding the loan mortgage rate, to alleviate the problem of small and medium enterprises' loan difficulty.

In response to the financing difficulties of SMEs, the bank also needs to constantly innovate and introduce financing tools to meet the needs of SMEs.

In this respect, the "self liquidating trade financing" service launched by the deep development in the whole country can enlighten us.

A person in charge of the head office of the Shenzhen development bank told reporters that "self compensation trade financing" no longer emphasizes unilaterally the financial characteristics and the industry status of the subject, nor does it simply make credit decisions based on the isolated evaluation of the trusted entity, but really pays attention to and combines its real trade background.

If the strength and scale of an enterprise can not reach the traditional credit access standard, and the upstream and downstream enterprises have stronger strength, the trade background is real and stable, and the bank can effectively control its capital flow or logistics, the enterprise can get the credit support of the bank.

Popularly speaking, it means "a big money", that is, a small and medium-sized private enterprise can get the bank's credit as long as its upstream and downstream partners are strong enough.

On the basis of this service concept, the bank has systematically provided more than 20 innovative financial products and business models to meet the differentiated needs of different customers.

As an unknown private enterprise, Guangzhou Jin Li Li economic and Trade Co., Ltd. has benefited from the support of this business in the past three years, and the trade scale of the company has increased by more than 500%.

Tan Kang, general manager of the company, told reporters that the financial innovation of banks not only meets their capital needs, but also enables banks to effectively guard against risks.

We know that the underlying reason for the financing difficulties of SMEs is institutional barriers. Therefore, only institutional reform can solve the fundamental problem.

For government departments, the most important thing at present is to change ideas and speed up financial reform from the overall situation of national economy and social development, and adjust and improve indirect and direct financing system.

It is feasible for the government or other organizations to set up specialized SME financing institutions (develop local small and medium private banks) and develop small and medium-sized enterprises' capital markets and venture capital funds for small and medium-sized enterprises.

According to the former practice, Zhang Chenghui, a researcher at the State Council Development Research Center, pointed out that because local small and medium financial institutions are familiar with the local situation, it is easy to understand the local enterprises' operating conditions, project prospects and credit level, so that they can overcome the obstacles of higher paction costs resulting from asymmetric information, reduce service prices and meet the needs of both sides of capital supply and demand.

Therefore, we must vigorously develop local small and medium-sized private commercial banks in order to effectively provide financial support for SMEs.

In view of the problems exposed by the state-owned banking system, the local small and medium-sized banks should not continue to adopt the state-owned or state controlled ownership mode, but should be based on the shareholding system constructed by private capital.

What we need to point out is that although small and medium-sized private commercial banks have strong property rights constraints, because of the leverage characteristics of the banking industry (with a small amount of capital for large sums of money), private banks still have operational risks, which require relevant departments to strengthen supervision.

The key points of supervision are as follows: first, formulate strict credit standards for investors and senior management personnel, set up files and periodically review them to prevent entry of bad credit and bad deeds into the banking industry; second, strictly examine and prohibit excessive dividends and capital loss of shareholders and prevent short-term acts of banks due to impulsive interests of shareholders; third, set up a capital classification standard to limit the scope and scope of activities of local banks.

For the latter practice, Wang Yisi of the Academy of social sciences has his unique opinion.

He told reporters that the establishment of a multi-level, small and medium-sized capital market system for small and medium-sized enterprises should mainly include two levels: the second board market and the regional small capital market. According to their division of labor, the second board market mainly solves the financing problem of SMEs in the middle and late stages of entrepreneurship. The regional micro capital market mainly provides financing services for small and medium-sized enterprises that fail to meet the qualification criteria for second board market, including providing private equity capital for SMEs in the early stage of entrepreneurship.

Two levels of market entry qualification and supervision are gradually stricter, and the quality of enterprises is gradually improving.

In a certain sense, China needs more capital markets at the latter level, because the current SME board is still in the framework of the stock exchange, so it is difficult to get rid of the various problems and restrictions existing in the existing stock exchange.

At the same time, because of the limited capacity and the high cost of listing, many small and medium-sized enterprises will not be able to enter the market for financing.

He further pointed out that the regional small capital market can be pformed from the original securities trading center, the existing property rights trading market and the technical property rights trading market.

In view of the lessons of the past regional securities market, we should pay attention to regulating and strengthening supervision when constructing this market.

The key points of regulation and supervision include: stock listing and information disclosure standards and rules; stock trusteeship clearing system; market intermediaries' market access, exit rules, trading rules, information disclosure and so on.

We should actively develop the corporate bond market and the long term bill market, and enrich the variety of pactions in the capital market.

The shortage of funds is one of the outstanding problems faced by small and medium-sized enterprises in the world. Many developed countries have adopted various financial support policies and means to help SMEs solve the problem of funding sources, and have received good results.

The government plays a vital role as a link to the financing of small and medium-sized enterprises.

For example, in the United States, the small business administration as a permanent federal government agency, its main task is to help small businesses develop, especially to help small businesses solve the problem of insufficient funds.

In China, we must first attach importance to and support for the financing of small and medium-sized enterprises, and gradually improve the financing environment of SMEs through the market driven by the government.

Perhaps solving this problem is a long way to go. But as long as the whole society attaches importance to this problem and can take effective measures, this problem will be solved thoroughly.