Financing Problems of SMEs in China

Bc. Xie Xie

Bachelor's thesis

Abstract:

The role of SMEs is becoming increasingly crucial in the economic development of every country. SMEs are a prerequisite and a condition for maintaining market competitiveness, ensuring stable economic performance, and guaranteeing full employment. The rapid development of small and medium-sized enterprises will ensure stable economic growth. There are many factors that have affected and constrained the further development of SMEs in recent years due to the intense competition for business. As a developing country, for Chinese companies, it is mostly SMEs that hold most of the market share. However, SMEs often face problems in the process of their own development, which not only restrict their own influence, but also have certain negative effects on the development and progress of the relevant industries. The significance of financing is to solve the problem of survival and development of these enterprises. This paper discusses the significance and impact of SMEs on their worldwide and Chinese context. The important role of financing in the world sphere and in China and how it is financed are analyzed and it is possible to identify the need for companies to increase their capital flows and obtain economic benefits through financing. Finally, the future development of SMEs is discussed.

Abstract:

The role of SMEs is becoming increasingly crucial in the economic development of every country. SMEs are a prerequisite and a condition for maintaining market competitiveness, ensuring stable economic performance, and guaranteeing full employment. The rapid development of small and medium-sized enterprises will ensure stable economic growth. There are many factors that have affected and constrained the further development of SMEs in recent years due to the intense competition for business. As a developing country, for Chinese companies, it is mostly SMEs that hold most of the market share. However, SMEs often face problems in the process of their own development, which not only restrict their own influence, but also have certain negative effects on the development and progress of the relevant industries. The significance of financing is to solve the problem of survival and development of these enterprises. This paper discusses the significance and impact of SMEs on their worldwide and Chinese context. The important role of financing in the world sphere and in China and how it is financed are analyzed and it is possible to identify the need for companies to increase their capital flows and obtain economic benefits through financing. Finally, the future development of SMEs is discussed.

Keywords

Small and Medium Enterprises, Corporate Finance, Capital Investments, Funding Sources, Financing Objectives

Language used: English

Date on which the thesis was submitted / produced: 21. 4. 2022

Thesis defence

• Date of defence: 2. 6. 2022
• Supervisor: doc. RNDr. Petr Budinský, CSc.
• Reader: Ing. Miroslav Pavlák, Ph.D.

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Economics and Management