The analysis on institutional reasons for financing difficulties of China's science-technology SMEs

摘要

The current situation is that the contradiciton between fund supplies and demand for fund is still prominent, which restricts the science-technology small medium enterprise(SMEs) in China to further develop. The paper analyse the reasons for financing difficulties from the perspective of institution. The result is that there are some institutional problems for science-technology SMEs in China. The first one is fuzzy property rights of enterprises themselves; secondly, weak support of government; the third one is poor legal environment for enterprises' development; the last one is imperfect credit guarantee system of enterprises. To address the above issues, science-technology SMEs should clearly define property rights, improve government's effectiveness, legal system, the mechanisms for credit evaluation and guarantee to broaden the financing channels.