—Since the reform of state-owned enterprises, small and medium-sized enterprises gradually become the leading engine of our national economic growth, but due to the economic development of our country is still at the stage of transformation with imbalanced credit rationing, imperfect financial system and capital market and other issues which have serious impacts on the financing procession of small and medium-sized enterprises, leading to its limited access to credit resources. Under this background, combining with the related theory, this paper is based on the reputation and relationships proposed by Allen (2005) to study whether the establishment of financial relationships can help small and medium-sized enterprises obtain stable and adequate credit support or not, so as to ease the external financing constraints, and then put forward countermeasures and suggestions which can lay the foundation for small and medium-sized enterprises’ further development and expansion.
—Financing constraints, financial relationships, small and medium-sized enterprises.
Yinghui Li is with Shandong University of Finance and Economics, Jinan, Shandong, China (e-mail: firstname.lastname@example.org).
Cite: Yinghui Li, "The Analysis of Financial Relationships How to Affect Financing Dilemma of Small and Medium-Sized Enterprises," International Journal of Trade, Economics and Finance vol.6, no.3, pp. 176-180, 2015.