Three Perspectives in the Field of Small and Micro-sized Enterprises’ Financing
Need to be Re-examined
Abstract：To get a deeper understanding about the financing problems of Small and Micro-sized Enterprises (hereafter SMEs), Nanchang Central Branch of the PBC conducted a provincial investigation recently. It is found that three perspectives about SMEs’ financing problems need to be re-examined. Firstly, the general judgment that SMEs have great difficulties in financing is not accurate. Investigation results show that most of SMEs’ effective credit demand have been met. We need to recognize the effectiveness of financial support. Secondly, the general judgment that SMEs’ loan is of high risk is not accurate. The risk of bank loan is not necessarily related the sector and size of a enterprise. Risk management techniques of bank is a very important factor. Thirdly, the judgment about SMEs’ effective financing demands is not accurate. There are possibilities that the SMEs’ demands for credits are overrated.
Key words: Small and Micro-sized Enterprises(SMEs); Difficulties in Financing; High Risk; Effective Financing Demand