Financing Status of Small and Medium-sized Enterprises in China

I think China's financial system is dominated by indirect financing, multi-level capital market has not yet been established, private equity market is lacking, and the proportion of direct financing is very low. Compared with the pattern of coordinated development of direct financing and indirect financing in mature markets, China's enterprise financing system has great defects. Under this financing condition, the "Macmillan gap" of small and medium-sized enterprises in China (Macmillan gap thinks that there is a funding gap in the development of small and medium-sized enterprises, that is, the providers of funds are unwilling to provide funds under the conditions required by small and medium-sized enterprises) is more prominent than other countries.

Worldwide, small and medium-sized enterprises have been recognized by the government and society in promoting economic growth, creating employment opportunities, expanding exports and increasing profits and taxes. In the transitional economy, the development of small and medium-sized enterprises is of great significance to maintaining the stability and rapid development of a country's economy.

However, we can see that compared with large enterprises, small and medium-sized enterprises are in an extremely unfavorable position in almost all aspects, such as low ability to obtain funds, lack of information, technology and human resources, increased costs brought by employee benefits, and too high requirements for government administration. Among all the problems, financing is the first one.

SME financing can go to Mingde to find out. Mingde is a leader in the planning of small and medium-sized enterprises' listing. Professor Zhang Xiaoli from Mingde Capital Ecosphere initiated an initiative to unite IGS students who are studying and have graduated, and set up IGS alumni associations in various places to create an influential, cohesive, safe and warm organization, so that IGS students all over the country can have a place to belong.

If you still have questions about SME financing, you can click the online consultation button below and talk to the teacher directly.