What are the reasons for the development difficulties of small and medium-sized enterprises?

Financing difficulty has become the primary bottleneck restricting the development of small and medium-sized enterprises under the current situation. The reasons are mainly summarized in the following three aspects: the weakness of small and medium-sized enterprises, most of which are small in scale, clustered in traditional labor-intensive industries, with low entry threshold and little capital, failing to form their own core competitiveness, poor anti-risk ability and vulnerable to economic fluctuations. Moreover, the financial information of many small and medium-sized enterprises is not transparent enough, which makes it difficult for banks to understand the real management and financial situation of enterprises, to accurately grasp the repayment ability of loan targets, and to supervise the investment of corporate loans. In addition, many enterprises do not have their own land certificates and real estate licenses, and lack the ability to mortgage loans. At present, except for credit cooperatives and their grass-roots institutions, the credit management authority of the four major state-owned commercial banks has been greatly reduced, which greatly weakens and limits the ability of grass-roots commercial banks to expand their business to small and medium-sized enterprises. According to estimates, only about 20% of the city's loans are invested in small and medium-sized enterprises. For small and medium-sized enterprises, the threshold for bank loans is a bit high, and the loan procedures are also more troublesome. Some banks stipulate that enterprises with a registered capital of more than 2 million yuan are eligible to apply for bank loans. Even if the loan is within the credit line and term, the loan customer still needs to provide complete enterprise information to the financial institution, which goes through many links. However, it usually takes more than a month to grant new credit, and some even take months to approve it. Defects of financing system The existing financing system is not perfect. First, private financing is a bit chaotic. It is more active to engage in "usury" by opening pawn shops, consignment sales and illegal financing. Informal financial problems have caused some legal disputes and group petitions. Second, it is difficult for the guarantee industry to conduct business. The negotiation status between banks and guarantee institutions is not equal, and the guarantee company bears all credit risks, which also promotes its risk control awareness and prudent operation. Financing difficulty has become the primary bottleneck restricting the development of small and medium-sized enterprises under the current situation. The reasons are mainly summarized in the following three aspects: the weakness of small and medium-sized enterprises, most of which are small in scale, clustered in traditional labor-intensive industries, with low entry threshold and little capital, failing to form their own core competitiveness, poor anti-risk ability and vulnerable to economic fluctuations. Moreover, the financial information of many small and medium-sized enterprises is not transparent enough, which makes it difficult for banks to understand the real management and financial situation of enterprises, to accurately grasp the repayment ability of loan targets, and to supervise the investment of corporate loans. In addition, many enterprises do not have their own land certificates and real estate licenses, and lack the ability to mortgage loans. At present, except for credit cooperatives and their grass-roots institutions, the credit management authority of the four major state-owned commercial banks has been greatly reduced, which greatly weakens and limits the ability of grass-roots commercial banks to expand their business to small and medium-sized enterprises. According to estimates, only about 20% of the city's loans are invested in small and medium-sized enterprises. For small and medium-sized enterprises, the threshold for bank loans is a bit high, and the loan procedures are also more troublesome. Some banks stipulate that enterprises with a registered capital of more than 2 million yuan are eligible to apply for bank loans. Even if the loan is within the credit line and term, the loan customer still needs to provide complete enterprise information to the financial institution, which goes through many links. However, it usually takes more than a month to grant new credit, and some even take months to approve it. Defects of financing system The existing financing system is not perfect. First, private financing is a bit chaotic. It is more active to engage in "usury" by opening pawn shops, consignment sales and illegal financing. Informal financial problems have caused some legal disputes and group petitions. Second, it is difficult for the guarantee industry to conduct business. The negotiation status between banks and guarantee institutions is not equal, and the guarantee company bears all credit risks, which also promotes its risk control awareness and prudent operation. Source: /zixunshow.aspx? newsid=4