Financing Difficulties and Solutions for Small and Medium-sized Enterprises in Anhui Province About Financing Difficulties and Countermeasures for Small and Medium-sized Enterprises

Abstract: Financing difficulties seriously restrict the survival and development of small and medium-sized enterprises. Through extensive research on small and medium-sized enterprises in Anhui Province, this project intends to discuss the specific manifestations of financing difficulties for small and medium-sized enterprises in Anhui Province, and conduct an in-depth analysis of the causes of financing difficulties. Based on the successful experience and relevant research results at home and abroad, we will explore ways to find solutions suitable for Anhui Province. Financing methods and channels for small and medium-sized enterprises. It is initially believed that internal defects of enterprises, poor financing environment and the absence of government and financial institutions are the main reasons for the financing difficulties of small and medium-sized enterprises in Anhui Province. Only by increasing policy support for small and medium-sized enterprises can we promote the development of small and medium-sized financial institutions and expand financing. Only through channels can we effectively resolve the financing difficulties of small and medium-sized enterprises in Anhui Province.

Keywords: small and medium-sized enterprises; financing; Anhui Province

my country's small and medium-sized enterprises have grown rapidly and have become the most dynamic growth point in the national economy since the reform and opening up. However, due to my country's imperfect financial system, imperfect relevant laws and regulations, and the shortcomings of small and medium-sized enterprises themselves, the development of small and medium-sized enterprises has been severely restricted. In 2012, the world economic situation was complicated, the downward pressure on the global economy increased, and the European sovereign debt crisis caused repeated and large fluctuations in the international financial market. The impact of the current international situation on the domestic economy first manifested its impact on small and medium-sized enterprises. As a large province in central China, Anhui Province is an important link in the national economic chain. Small and medium-sized enterprises occupy an important position in the economic development of Anhui Province. The problem of financing difficulties for small and medium-sized enterprises has seriously restricted the industrial transfer and transformation of enterprises. Under the severe economic situation It is of great practical significance to explore how to solve the financing difficulties of small and medium-sized enterprises.

1. The current situation and dilemma of financing for small and medium-sized enterprises in Anhui Province

The financial support received by small and medium-sized enterprises in Anhui Province is extremely disproportionate to their contribution to the economy. According to the Anhui Economic and Information Technology Commission, there are 230,000 non-public enterprises in the province, and their added value accounts for 57% of the regional GDP, and the tax paid accounts for 50% of the total fiscal revenue; the added value of small and medium-sized industrial enterprises above designated size accounts for all The proportion of industries above designated size exceeds 60%. The proportion of direct financing for small and medium-sized enterprises only accounts for 2. Small and medium-sized enterprise loans account for less than 20% of loans from financial institutions, which is far lower than the 40% ratio in developed coastal provinces.

At present, the main problems in the financing of small and medium-sized enterprises in Anhui Province are reflected in the following aspects. First, external financing is difficult, and internal financing has become the main way of corporate financing; second, the cost of direct financing for enterprises is high and channels Narrow; third, faced with unfair market treatment, it becomes more difficult for companies to obtain bank loans.

2. The causes of financing difficulties for small and medium-sized enterprises in Anhui Province

1. The problems of small and medium-sized enterprises themselves

The shortcomings of small and medium-sized enterprises themselves are the fundamental reason for the financing difficulties of enterprises. First of all, small and medium-sized enterprises in our province generally have small capital scale, poor economic returns, and low management and management levels, which results in poor mortgage capabilities and low credibility of the enterprises, which in turn increases the risk of financing; secondly, the financial accounting system of small and medium-sized enterprises is not perfect, Operators deliberately cover up corporate financial information for their own benefit, resulting in financial statements that cannot truly reflect the company's operating conditions, making it difficult for banks to conduct a comprehensive review to determine whether loan support should be provided; thirdly, small and medium-sized enterprises have a weak sense of credit, default and evade bank debts. This situation occurs from time to time, which not only poses a great threat to the security of credit funds of financial institutions, but also greatly reduces the credibility of enterprises and intensifies the difficulty of loans for small and medium-sized enterprises.

2. National policy system and macro factors of financial institutions

From the perspective of the national policy system, laws and regulations related to the financing of small and medium-sized enterprises are not yet complete, and the government’s policy support The intensity is also insufficient. Compared with other countries, in addition to the promulgation and implementation of the "Small and Medium Enterprises Promotion Law", my country's policy support for small and medium-sized enterprises is more reflected in incentive measures. Some policies have not been implemented in detail. The country lacks support for small and medium-sized enterprises. Substantive support, such as establishing specialized institutions to provide loans to small and medium-sized enterprises, setting up intermediary institutions to provide education, training and management consulting services to small and medium-sized enterprises, etc.

From the perspective of financial institutions, on the one hand, the long credit process of commercial banks is difficult to adapt to the timely characteristics of small and medium-sized enterprises' demand for loans. The inability to finance production and operations in a timely manner will lead to losses for small and medium-sized enterprises and again. Generate financing needs and enter an unfavorable cycle again. On the other hand, banks have strict credit conditions for small and medium-sized enterprises, which not only increases the loan costs of small and medium-sized enterprises, but also increases financing risks. When risks and returns are greatly different, small and medium-sized enterprises may choose to give up loans. Finally, the lack of small and medium-sized financial institutions also adversely affects the financing of small and medium-sized enterprises.

3. Successful experiences at home and abroad in solving the financing difficulties of small and medium-sized enterprises

The development of small and medium-sized enterprises has attracted the attention of governments of various countries. They have taken a series of measures to promote the development of small and medium-sized enterprises. Some of them have certain enlightenment effects on us. Japan focuses on improving the political and legal system to strengthen the guidance and support of small and medium-sized enterprises at different stages of economic development; the United Kingdom focuses on supporting small businesses and creates a stable environment for their development through the government's direct participation in formulating general guidelines for the development of small businesses; Germany Paying equal attention to economic and legal means, while providing financial subsidies and preferential policies to small and medium-sized enterprises, it also uses legislation to enable small and medium-sized enterprises to participate in fair competition; France takes various measures to encourage the establishment of new enterprises, thereby creating a good environment for the development of young enterprises. environment.

Zhejiang Province is an outstanding representative in terms of successful financing cases for domestic small and medium-sized enterprises. In 2012, Huijishan Shaoxing Liquor Co., Ltd. obtained 82 million yuan from Shaoxing County Rural Cooperative Bank by pledging its "Huijishan" trademark. This is a successful case of using the trademark right pledge method to develop financing channels for small and medium-sized enterprises. On the one hand, Zhejiang Province encourages and supports small and medium-sized enterprises to go public. Among the 105 listed companies in Zhejiang, 45 are small and medium-sized enterprises. On the other hand, Zhejiang Province has always been active in private lending and debt disbursement business. There are many banks in Shaoxing, Wenzhou, and Hangzhou engaged in pawn investment business, which provides convenient channels for financing small and medium-sized enterprises. In addition, Zhejiang Province is also good at absorbing funds from government policies and broadening financing channels for small and medium-sized enterprises through the implementation of equity pledges and other methods. In terms of banks, Tailong Bank has simple procedures, pays attention to corporate reputation, and implements moral guarantees. This solves the problem of "credit discrimination" of banks against small and medium-sized enterprises to a certain extent and supports the financing of small and medium-sized enterprises.

Generally speaking, foreign developed countries and developed coastal provinces have provided our province with certain experience and reference in solving the problem of financing difficulties for small and medium-sized enterprises. We should find specific solutions based on the actual situation in the province. Solution.

4. Countermeasures and suggestions to resolve the financing difficulties of small and medium-sized enterprises in Anhui Province

1. Small and medium-sized enterprises should strengthen their own quality construction

Some of the reasons for small and medium-sized enterprises themselves mentioned earlier This has led to the dilemma of financing difficulties. To get out of this dilemma, small and medium-sized enterprises first need to strengthen their own quality construction, such as improving their business management level, improving their financial accounting system, establishing their corporate reputation and image, accelerating their transformation and development, and obtaining funds from banks and governments. Support to get out of financing difficulties.

2. Develop small and medium-sized financial institutions

In line with the actual financing conditions of small and medium-sized enterprises in Anhui Province, on the one hand, actively promote the development of small and medium-sized financial institutions, such as helping township banks to grow rapidly , encourage large commercial banks to open branches in various counties in the province. Local banks such as Huishang Bank should learn from and draw on the successful experience of other banks outside the province in serving small and medium-sized enterprises and support small and medium-sized enterprise financing. On the other hand, encourage credit within the province The development of guarantee agencies and small loan companies should be guided and supervised while standardizing their operations so that they can better provide financing services to small and medium-sized enterprises.

3. Government guidance and support

At present, small and medium-sized enterprises in the province have difficulty surviving, partly because of high taxes and difficulty in getting loans. In this regard, the Anhui provincial government should provide small and medium-sized enterprises with Certain tax reductions and special funds will be set up to support the listing of high-quality small and medium-sized enterprises, provide certain tax incentives for commercial banks, small loan companies and guarantee institutions, improve the financing environment for small and medium-sized enterprises, and broaden financing channels.

In addition, the government should respond to relevant national policies and regulations, actively encourage and cultivate more intermediary agencies that provide services for small and medium-sized enterprise financing decision-making and operation management, and when necessary, relevant departments should organize direct education and training for small and medium-sized enterprise practitioners to enable Small and medium-sized enterprises are growing healthily under the support and guidance of the government.

5. Conclusion

From the above analysis, it can be seen that solving the financing difficulties of small and medium-sized enterprises in Anhui Province requires the joint efforts of enterprises, financial institutions and the government. Enterprises are strengthening their own While improving quality, the government needs to provide certain support and guidance, as well as the support of financial institutions, to jointly create a financing environment suitable for the development of small and medium-sized enterprises. The successful experiences of foreign developed countries and domestic coastal provinces are worthy of our study and reference. From them, we can extract practical solutions that are in line with the current financing situation of Anhui small and medium-sized enterprises and help small and medium-sized enterprises get out of financing difficulties.

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About the author: Huang Tingting (1989-), female, from Fuyang, Anhui, 2009 International Business School, School of International Economics and Trade, Anhui University of Finance and Economics Professional undergraduate students.