A Study of Innovation Financing Channels of Small and Medium-sized Enterprises

Small and medium-sized enterprises (SMEs) play a leading role in technological innovation in China. Nevertheless, the problem of narrow financing channels has been restraining technological innovation: Compared with large enterprises, SMEs are facing such problems as non-smooth financing channels, simplistic financing forms, and the lack of stable, sufficient and long-term financing sources. In the light of the characteristics of high risk, high return, and high demand of technological innovation investment in SMEs, and more financing difficulties brought by those characteristics, this paper probes into the issue of how to broaden the financing channels of SMEs featuring technological innovation.