A research study on SMEs funding problem in Wenzhou

Abstract

SMEs means small and medium-sized enterprises. The SME sector plays an extremely important part of the modern economy, proving to be the most attractive and tremendous innovative system. In Wenzhou, such a strong city with private economy in Zhejiang province, SMEs also play a more and more significant role in the economy. They involve in job creation in this modern-day economy. Out of the SMEs' contribution, there is a significant growth in GDP and proper money flow across the economy is noticed. SME charges lower rates to its clients by providing a quality business. When the state economy is in healthy condition, the SMEs will flourish. If the economy is volatile, the SMEs will face a risk of going down, as they survive within a small budget. Enough and steady funding can decrease the pressure of SMEs when they are in terrible situations. Understanding the importance of SMEs in the economy and finding reasonable ways to solve the funding problem are worth for economy.