On Financing Problems and Strategies of Chinese SMEs

This paper analyzes the status of internal financing and external financing of Chinese SMEs (small and medium-sized enterprises) and indicates that the financing problems of Chinese SMEs have hindered their healthy development. Furthermore, to release the pressure of inflation and employment and ensure the sustained development of national economy the financing problems of SMEs need to be solved urgently. Then this paper compares the financing status of SMEs internationally and proposes some suggestions which are improving the quality of SMEs, adding governmental institutions, promoting the development of venture capital firm and eradicating unfair expenses.