SME Financing Problems and the International Experience

SMEs play an important part in China's economic development.At present,the main obstacle curbing SME development is finance difficulty,caused by both internal factors like integrity rank differences and small-scale asset and external factors such as the banks' fear of financial risks.If the difficulty could not be lessened,unemployment will increase affecting the economic growth and social stability.Chinese government at all levels must learn from the relative experience of other countries to put into practice further various measures supporting SME development in financing;SMEs should boost internal momentum for a sustainable development by enhancing inner-source financing ability,strengthening credit construction,and optimizing the financing structure.