Establishing financial system for small and middle-sized enterprises according to the condition of China

Compared with large and middle-sized enterprises, small and middle-sized enterprises have less advantage in plant-scale equipment, operating conditions, credit standing and take more operating risks. It's common to provide small and middle size enterprises with some necessary conveniences, privileges and financial assistance to give an impetus to their development In china, development fund and guarantee fund for small and middle size enterprises should be established according to the enterprises' financial characteristics. But considering that Chinese small and middle sized enterprises are numerous and the market system is not sound enough yet labor division and cooperation of enterprises is not so developed in china presently, we will have to work more on promoting orientation of small and middle sized enterprises, on specialization of both functions of small and middle sized enterprises and large sized enterprises, on labor division and cooperation between them and on opening more sources of income and cutting down expenses, in order to solve the problems of financial development of small and middle sized enterprises to the full.