Countermeasures for Financing Difficulties of Small and Medium-Sized Enterprises in Baishan City, Jiliu Province – Diatomite Industry

Abstract

     Small and medium enterprises(SMEs) financing have always been troubled by the survival and development of enterprises the main problem.Taking Baishan City, Jilin Province as the research background, this paper analyzes the financing status of small and medium-sized enterprises in Baishan City and the reasons for financing difficulties, based on the perspective of enterprises, specifically analyzes the development status of diatomite industry and the production and operation of enterprises in Baishan City.The purpose of this study is to analyze the financing difficulties of SMEs. The four objectives of this study are: 1.To explore the impact of institutional construction of financial institutions on financing; 2.To explore the impact of policy environment and legal environment on financing; 3.To explore the impact of enterprise scale and collateralized assets on financing costs;4.To explore the impact of corporate governance structure, financial system and information asymmetry of banks and enterprises on financing.

     This paper analyzes the problems by using mixed research method, and adopts the theory of credit rationing, information asymmetry, financing life cycle, financing guarantee theory and relational lending theory.

     This paper flexibly uses the financing theory of small and medium-sized enterprises to conduct research.The following measures can solve all research problems in this paper ：1.The government should innovate the financial system, that is, establish a sound financial system that matches the development of small and medium-sized enterprises;2.Should create a high-quality financing environment and a sound service system, improve the operating capacity of small and medium-sized enterprises, and reduce the risks of the government and banks.;3.Effectively improve the quality of small and medium-sized enterprises themselves, improve credit conditions, reduce the difficulty of financing small and medium-sized enterprises, and increase the willingness of banks to lend;4.Small and medium-sized enterprises should build a modern enterprise system and improve the corporate governance structure, and improve the enterprise financial system to eliminate the problem of information asymmetry between banks and enterprises.

Keywords: small and medium enterprises, diatomite industry, financing difficulties, recommendations.

Countermeasures for Financing Difficulties of Small and Medium-Sized Enterprises in Baishan City, Jiliu Province – Diatomite Industry

Master of Business Administration (International Program), Siam University, Bangkok, Thailand