Research on the Current Financing Challenges Faced by Chinese Small and Medium-Sized Enterprises
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Research on the Current Financing Challenges Faced by Chinese Small and Medium-Sized Enterprises

Junxun Yang 1*
1 China Finance Institute University
*Corresponding author: junxunyang@163.com
Published on 13 August 2025
Journal Cover
AEMPS Vol.209
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-309-3
ISBN (Online): 978-1-80590-310-9
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Abstract

Small and Medium-Sized Enterprises (SMEs) are a cornerstone of China's national economy. Accounting for over 98% of all registered enterprises, they form the bedrock of economic activity. These businesses generate 60% of China's GDP, contribute approximately 50% of tax revenues, drive over 70% of technological innovations, and provide employment for more than 80% of the urban workforce. Often described as the "capillaries" of the economy, SMEs fuel growth and ensure social stability by sustaining livelihoods and fostering grassroots entrepreneurship. Despite their critical role, SMEs face systemic challenges in accessing financial resources. This study addresses these challenges through a mixed-methods approach combining empirical analysis, policy evaluation, and comparative case studies. By analyzing financial data from 2,000 SMEs (2018-2023). It further benchmarks China's SME financing mechanisms against Germany's Mittelstand support system and Japan's credit guarantee models It concludes that resolving these difficulties requires efforts from and improvements in government policies and the external environment.

Keywords:

Middle and small-sized enterprises, Credit

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Yang,J. (2025). Research on the Current Financing Challenges Faced by Chinese Small and Medium-Sized Enterprises. Advances in Economics, Management and Political Sciences,209,25-29.

References

[1]. Zhou, J.(2022). Financing Analysis for Small and Medium Enterprises (SMES).Shandong's Textile Economy.. 3: 23-24

[2]. Zhang F. How Can Small and Medium Enterprises Overcome Financing Challenges? Business China 2025.03.159

[3]. Ou, YJ.(2016) Characteristics and Risk Control of Financing for Small and Medium-sized Enterprises. Finance and Accounting Research.. 36: 114-115

[4]. China Banking Association (CBA). (2023).  Development Report on the Financing Security Industry.  http: //www.china-cba.net

[5]. China Banking and Insurance Regulatory Commission (CBIRC). (2021). Regulatory Assessment Results of Financial Services for Small and Medium-Sized Enterprises by Commercial Banks.  http: //www.cbirc.gov.cn

[6]. World Bank. (2023).  Global SME Financing Report.  https: //www.worldbank.org

[7]. Li Q, Wang F, & Zhang W. (2021). Research on Financing Maturity Mismatch in Small and Medium-Sized Enterprises in the Manufacturing Industry. Economic Management, 43, 88–102.

[8]. Dai, X. et al. (2023) Satellite-based Pasture Loans. Agric. Finance. Rev.83(1): 78-95.

[9]. Ministry of Finance. (2023). Regulations on Financing Incentives for Small and Medium-Sized Enterprises.

References

[1]. Zhou, J.(2022). Financing Analysis for Small and Medium Enterprises (SMES).Shandong's Textile Economy.. 3: 23-24

[2]. Zhang F. How Can Small and Medium Enterprises Overcome Financing Challenges? Business China 2025.03.159

[3]. Ou, YJ.(2016) Characteristics and Risk Control of Financing for Small and Medium-sized Enterprises. Finance and Accounting Research.. 36: 114-115

[4]. China Banking Association (CBA). (2023).  Development Report on the Financing Security Industry.  http: //www.china-cba.net

[5]. China Banking and Insurance Regulatory Commission (CBIRC). (2021). Regulatory Assessment Results of Financial Services for Small and Medium-Sized Enterprises by Commercial Banks.  http: //www.cbirc.gov.cn

[6]. World Bank. (2023).  Global SME Financing Report.  https: //www.worldbank.org

[7]. Li Q, Wang F, & Zhang W. (2021). Research on Financing Maturity Mismatch in Small and Medium-Sized Enterprises in the Manufacturing Industry. Economic Management, 43, 88–102.

[8]. Dai, X. et al. (2023) Satellite-based Pasture Loans. Agric. Finance. Rev.83(1): 78-95.

[9]. Ministry of Finance. (2023). Regulations on Financing Incentives for Small and Medium-Sized Enterprises.

Cite this article

Yang,J. (2025). Research on the Current Financing Challenges Faced by Chinese Small and Medium-Sized Enterprises. Advances in Economics, Management and Political Sciences,209,25-29.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN: 978-1-80590-309-3(Print) / 978-1-80590-310-9(Online)
Editor: Florian Marcel Nuţă Nuţă, Xuezheng Qin
Conference website: https://2025.icemgd.org/
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.209
ISSN: 2754-1169(Print) / 2754-1177(Online)

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