Author(s)

Zhongyu Ding

Corresponding Author

Zhongyu Ding

Abstract

The most common problems faced by domestic small and medium-sized enterprises in the process of development are the difficulty and high cost of financing, among which the imperfect guarantee system is an important obstacle to the financing of SMEs. There are various difficulties in the current financing guarantee system of small and medium-sized enterprises in China, such as the imperfection of laws and regulations, the imperfection of fund compensation mechanism, the preference of guarantee institutions for large enterprises, imbalance between risk and income, and the lack of guarantee professionals. Since the reform and opening up, Wuxi has made great efforts in the collective economy. Through years of development, SMEs have blossomed everywhere, evolving a typical representative of the "Suzhou Wuxi Changzhou" economic development model. According to the latest statistics in 2018, there are more than 100000 small and medium-sized enterprises registered in Wuxi, and the economic contribution to this region has exceeded 70%.

Keywords

Financing and credit guarantee system; Corporate finance; SMEs