The research on the reason and countermeasure
of SME'S capital shortage in china
Abstract
With China's rapid economic development, SMEs have become an important pillar of our economy, expanding employment, an active market and increase revenue, social stability plays an irreplaceable role. But the existence of SMEs in China's own strength is weak, unstable income, lack of transparency of information, poor against risk, financial systems, and management is not strict, market development capability is very limited for some reason, coupled with the lack of SMEs policy and institutional support, commercial bank credit to SMEs lack the appropriate agencies, single financial product. Makes the financing of SMEs is a growing problem, directly restricts the sustainable development of SMEs. Firstly, small and medium enterprises and shortage of funds were defined; Second, from the external environment and their own deficiencies of the reasons for the shortage of finance for SMEs; last view of the current problems by improving the SMEs in their operations, management and development corresponding measures.
Key Words: SMEs; capital shortage; capital market financing