Financing Status, Problems And Countermeasures Of Small And Medium Sized Enterprises In China

The practice of various countries in the world shows that the primary bottleneck restricting the development of small and medium-sized enterprises is the difficulty of financing.

Therefore, this paper analyzes the financing status and causes of SMEs, reviews the basic practice of SME financing, and proposes policy recommendations for alleviating financing difficulties in light of the institutional, policy and operational obstacles in SME financing, which is of great practical significance for promoting the healthy development of SMEs.

In 2003, 56% of China's GDP, 59% of social sales, 46% of taxes, 62% of exports and 75% of employment were created or provided by small and medium-sized enterprises.

However, the financial resources obtained by small and medium-sized enterprises are quite incompatible with their role in the national economy and social development.

First, the financing status of small and medium-sized enterprises is limited by credit support. According to statistics, only 3 million of the 10% private enterprises in China are supported by bank credit.

In 2003, the proportion of short-term loans made by township, private, private and "three capital" enterprises accounted for only 14.4% of all short-term loans of banks.

According to the survey, in 2001, the bank loans of private investment in Zhejiang were only 20.1%.

The two direct financing channel is narrow.

Because of the high threshold of the securities market, the imperfect venture capital system and the quasi barrier of corporate bond issuance, it is difficult for small and medium-sized enterprises to raise funds publicly through the capital market.

According to a survey conducted by the people's Bank of China in August 2003, 98.7% of the financing of SMEs in China came from bank loans, that is, direct financing accounted for only 1.3%.

Three is its own lack of funds.

China's non-public enterprises are from scratch, from small to large, from weak to strong. Enterprise development mainly relies on their own accumulation and internal financing, which greatly restricts the rapid development and strengthening of enterprises.

According to the research data of International Financial Corporation, owner capital and internal retained earnings account for 30% and 26% of private enterprise's capital sources respectively, and corporate bonds and external equity financing are less than 1%.

(two) the main causes of "financing difficulty" of SMEs are: firstly, the distribution of financial resources is not matched with the layout of SMEs, and the policy intensity is not strong enough.

In order to guard against financial risks, state-owned commercial banks will implement the strategy of "big cities, big enterprises and big projects", large-scale withdrawal of grass-roots networks, and the right to collect loans, so that small and medium-sized financial institutions that match small and medium-sized enterprises' capital supply have responsibilities, powerlessness and weakness.

At the same time, the government's incentive mechanism for banks to develop SME loans needs to be innovated. Banks themselves are hard to adapt to the special needs of SMEs in terms of institutional setup, product design, credit rating, loan management and so on.

China has set up SME Technology Innovation Fund and small and medium enterprises international market development fund, but only about 1000000000 yuan a year can not meet the needs of the development of SMEs.

From 1999 to May 2004, small loans for individual businesses were also issued only 1 billion 800 million yuan. Compared to the huge demand for SMEs, they can only be a drop in the bucket.

The two is that the guarantee scale is small, the risk is dispersed and the compensation system is lacking, which is not suited to the demand of the enterprise credit capability enhancement.

According to the survey, the proportion of SMEs refusing to implement loans is up to 23.8%. Because of the failure to implement the mortgage, the ratio of refusal to lend is as high as 32.3%. The total two refusal rate is 56.1%.

However, the development of credit guarantee industry for SMEs is still difficult to meet the needs of SMEs to enhance their credit capability: the credit guarantee institutions funded by the government usually get one-time funding support only at the beginning of preparation, and lack of follow-up compensation mechanism. Private guarantee institutions are discriminated against by the ownership system and can only undertake the risk of secured loans alone, but can not form a sharing mechanism with the cooperative banks.

Because the risk dispersion and loss sharing and compensation system have not yet been formed, the amplification function of guarantee funds and the credit ability of guarantee institutions are greatly restricted.

In addition, the lagging construction of laws and regulations related to credit guarantee industry has affected the standard development of credit guarantee institutions to a certain extent.

The three is the multi-level capital market has not yet formed, and the proportion of direct financing and indirect financing is not coordinated.

According to the data, stock market financing accounted for only 1.6% in the first two quarters of 2003, and 2.2% of stock market financing in the first three quarters.

Under the premise that the direct financing and the indirect financing structure are very uncoordinated, the securities market is still tilting to the large enterprises based on the main board.

In addition, the low threshold gem has been delayed. The local equity trading market has been banned, informal financing lacks legal support, and the difficulty of direct financing of SMEs has intensified.

Four, small and medium-sized enterprises have weak financing ability and asymmetric information, which affect the enthusiasm of banks.

The management foundation of small and medium-sized enterprises is weak, and there is a general lack of good corporate governance mechanism.

In addition, the related paction is complex, the financial system is not perfect, the pparency is low, and the credibility is not high.

The characteristics of small and medium-sized enterprises borrowing are "less, more urgent and frequent". Banks often do not want to lend money because of the asymmetric credit information of SMEs, the paction of loans and the high cost of monitoring and risk.

In 2003, the average bad rate of loans to SMEs in China's main commercial banks was 32.1l%, which was 15.7 percentage points higher than that of commercial banks. The poor quality of loans also affected the enthusiasm of bank loans.

In order to give full play to the important role of small and medium-sized enterprises in the economic and social development of China, two measures have been taken to solve the problem of "financing difficulties" for SMEs. A series of measures have been taken: first, guiding financial institutions to innovate financial products and improving financial services; in 1998, the four major state-owned commercial banks have set up SME credit departments, and have adjusted the lending rates of small and medium-sized enterprises for two times, implemented floating interest rates to encourage commercial banks to increase loans to SMEs, and put forward a series of specific measures to encourage and guide various commercial banks to effectively strengthen and improve financial services for SMEs.

For example, the central bank supports small and medium-sized financial institutions that target small and medium-sized enterprises through refinancing, rediscount and issuing financial bonds; appropriate decentralization of loans for small and medium-sized enterprises, and the issuance of credit loans to small and medium-sized enterprises with market, effective and credit, simplifying the procedures of loan verification, improving the credit system and expanding the credit ratio.

To a certain extent, the above incentive measures have mobilized the enthusiasm of commercial banks to lend loans to SMEs.

As a national policy bank, the State Development Bank actively relies on the city commercial bank network to carry out the lending business for small and medium-sized enterprises, and tries to re guarantee the SME credit guarantee institutions.

The joint-stock commercial banks strive to realize the innovation of financial concepts, financial products and services.

The Guangdong Development Bank has decided to lend 100 billion yuan to non-public enterprises and small and medium-sized enterprises in three years, and has made a special private financial service plan for this purpose 100 years.

In view of the different financing needs of enterprises in the three stages of "entrepreneurship", "growth" and "development", eight packages were specially designed to effectively solve the problem of corporate loans.

According to the survey, more than 80% of the urban commercial banks are small and medium-sized enterprises, and more than 70% of the credit funds are invested in all kinds of small and medium-sized enterprises.

In order to expand the financing channels for small and medium-sized enterprises, governments at various levels have taken some measures in recent years to broaden the financing channels for SMEs: first, establish a scientific and technological innovation fund to support the rapid development of small and medium-sized enterprises through loan discount, free subsidy and capital investment, etc. Two.

From 1999 to 2003, the state invested 3 billion 300 million of its total financial support to support 4946 small and medium-sized technology projects in China, which effectively promoted the entrepreneurship and development of small and medium-sized enterprises.

The two is to establish a property rights trading market.

At present, China has established more than 200 property rights trading markets with different degrees and different scales. Among them, the property rights trading market in Shanghai, Beijing and Tianjin has a considerable scale.

The paction volume of Shanghai equity exchange in 2003 has exceeded 300 billion yuan, providing a trading platform for asset restructuring and property diversification of all kinds of small and medium-sized enterprises.

Three, we should give full play to pawn, financial leasing and other financing tools that are suitable for SMEs.

By the end of 2003, China's pawnshop had developed to more than 1000, with a capital of about 6000000000 yuan, which brought convenience to small and medium-sized enterprises through pawn financing, and the scale of financial leasing continued to expand. In 2003, only one province in Zhejiang had more than 70 billion yuan in financial leasing business.

The four is to open direct financing channels.

In May this year, the Shenzhen stock exchange launched the SME board, providing direct financing sources for the rapid growth of the strong and powerful SMEs.

According to statistics, at present, 34 households have completed the public offering, with a total scale of 834 million shares, with a total financing amount of 8 billion 221 million yuan, with an average issuance scale of 24 million 520 thousand shares, with an average financing amount of 242 million yuan and an average increase of 83% on the first day of IPO.

A group of eligible small and medium sized enterprises will get the opportunity of listing and financing.

(three) building a multi-level credit guarantee system, highlighting the problem of guarantee for small and medium-sized enterprises. Based on the experience of developed countries in supporting small and medium-sized enterprises, local governments at all levels promote the construction of SME credit guarantee system combined with our actual organization.

Through several years of practice, we gradually explore the "one body, two wings and four levels" SME credit guarantee system mode with Chinese characteristics.

"Integration" refers to the main body. The mode emphasizes "diversified capital, market-oriented operation, enterprise management, and support for the best people": "two wings" refers to commercial guarantee and folk mutual guarantee as a necessary supplement: the "four levels" refers to the central level, the provincial (city, district) level, the prefecture level, the county (city) level.

In recent years, the relevant laws, policies and tax preferences have been issued, which has effectively promoted the formation and development of the guarantee industry.

According to incomplete statistics, as of the end of June 2003, 966 small and medium enterprises credit guarantee institutions have been set up in China, raising 28 billion 700 million yuan of guarantee funds. About 50 thousand households have been insured, the total guarantee amount is about 118 billion yuan, and the newly increased sales income of the insured enterprises is 11 billion 800 million yuan, with 10 billion 200 million yuan added to profits and taxes.

To a certain extent, it alleviated the problem of SMEs seeking security.

(four) promoting the credit system of small and medium-sized enterprises, improving the financing capacity of small and medium-sized enterprises, cultivating credit demand, standardizing credit market, improving credit system and creating a credit environment, are of urgent practical significance for improving the overall quality and comprehensive competitiveness of SMEs, resisting credit risks and raising their own financing capacity.

On the one hand, we should gradually establish and improve the SME credit rating system and credit evaluation system, provide credit information to banks and other institutions, honor the credit SMEs, establish credit models, vigorously publicize and promote advanced models and experiences of credit management; on the other hand, actively carry out the construction and popularization of credit systems within enterprises, and strengthen internal contract management, marketing warning, business account collection, accounting management and pre employment investigation, etc.

At present, relevant departments have been piloted in cities such as Beijing, Shanxi, Jilin, Zhejiang, Sichuan and so on, and continuously improve their own financing ability by establishing enterprise credit files, credit rating and enterprise credit system.

It is a systematic project to solve the "financing difficulty" problem of SMEs. It involves many factors such as financing system, credit environment, the service consciousness and service level of enterprises themselves and financing institutions, and so on. It needs comprehensive coordination and matching solutions to solve the problem of "financing difficulty" of SMEs. Three

It is suggested that three principles should be followed: first, the implementation of industrial policies and the principle of employment priority; the two is to perfect the policy incentive principles for SMEs' financial services; three, to adhere to the principle of independent auditing and market operation.

The specific policy recommendations are as follows: first, to establish and improve the organizational system of small and medium financial institutions, and to allow the establishment or reconstruction of small and medium sized joint stock banks and cooperative financial institutions.

City Commercial Banks and urban credit cooperatives should actively attract non public capital stocks, and further expand and improve the strength and mechanism of financing for small and medium-sized enterprises in cities and towns.

Rural credit cooperatives should absorb farmers', individual businesses and small businesses' human shares, speed up the improvement of ownership structure and increase the credit service for rural SMEs.

(two) encourage all kinds of banks to increase their credit support to small and medium-sized enterprises. Through the support of tax revenue, the floating rate of interest rates, refinancing and rediscount, we encourage state-owned commercial banks, joint-stock banks and policy banks to raise the proportion of loans to SMEs, rationally determine the time limit and amount of loans for SMEs, and give full play to the role of SMEs in the banking sector.

Encourage policy