Research on Small- and Medium-sized Enterprises Financial Support System

In recent years, small-and-medium-sized enterprises (SMEs), as the most dynamic economic cells in China, have developed rapidly and attracted increasing attention. However, deeply influenced by the worsening debt crisis in Europe and the implementation of China's financial deflation policy, SMEs' high-cost financing difficulties have become more serious. As a systemic issue, the SMEs' financing problem has to be solved with efforts from all sides in our society. This paper attempts to make a detailed analysis of SMEs' financing problem based on system theory, taking developed countries' experiences and China's national conditions into full consideration. We hold that, to solve this problem, we should optimize the financing mechanism, win banking support, and innovate the financing market and loan guarantee system. More importantly, we should establish an efficient financial support system with Chinese characteristics by taking the following measures: improving SMEs' financial mechanism and system, strengthening SMEs' financial ecological environment, optimizing and innovating SMEs' financial products, strengthening regulations guiding non-governmental financing, and expanding SMEs' equity financing teams. Since there is an imbalance between the present financing structure system and potential economic growth structure, this will restrict China's economic growth. Therefore, in constructing an efficient financial support system for SMEs, all measures mentioned above need the government's full support. Through emphasizing the government's role, increasing financial support to SMEs, and guiding the flow of bank loans and investment funds, we are surely able to improve and perfect the financial support system with Chinese characteristics for SMEs.