The sources of funds for foreign SMEs are self-raising, direct financing, indirect financing, and government support funds. According to the type of law of the enterprise, the financing of small and medium-sized enterprises can be divided into two situations: one is a single-owner-owned enterprise and the partnership is a micro-enterprise. These enterprises are unlimited liability companies, which are characterized by not having to pay corporate income tax, paying personal income tax, and having a relatively light tax burden, but they are not entitled to directly finance the society in the form of bonds and stocks, and also have to deal with their business risks. Take full responsibility. The second is the company-made SMEs. Such enterprises are limited liability enterprises, which are characterized by the need to pay high corporate income tax and personal income tax. The tax burden is relatively heavy, and only the limited liability of the equity capital is borne by the company.
Government funding is an important part of the funding of SMEs. In view of the situation of various countries, the government's financial support can generally account for about 10% of the SMEs' external funds. The financial support methods mainly include: tax incentives, financial subsidies, loan assistance, venture capital and the opening of direct financing channels.
Tax incentives are the most direct form of financial assistance, which is conducive to the accumulation and growth of SME funds.
Corporate taxation in developed countries generally accounts for 40%-50% of the added value of enterprises. In the case of a progressive tax system, the SME tax burden, although relatively light, still accounts for about 30% of the added value. In order to further reduce the tax burden of small and medium-sized enterprises, countries have adopted measures such as reducing tax rates, tax reductions, raising tax thresholds, and increasing the depreciation rate of fixed assets, so that tax revenue can be reduced by more than half, so that the total taxation level is 30% of the added value. % dropped to around 15%. This tax-free fund is universal and is vital to the survival of SMEs.
Subsidies are financial assistance given by the government to make SMEs fully function in certain aspects of the national economy and society.
The application of financial subsidies is to encourage small and medium-sized enterprises to absorb employment, promote the scientific and technological progress of small and medium-sized enterprises, and encourage the export of small and medium-sized enterprises. The main types of subsidies are: employment subsidies, research and development subsidies, and export subsidies. Generally speaking, the government's financial subsidies are limited and non-universal (unlike tax incentives), whose function is to guide.
Among them, France's financial subsidies for SMEs are the most complete and comprehensive. The newly-built enterprises in the country can reduce the tax amount by 80% and exempt the income tax for three years; the establishment of a company in a key development zone can be exempted from three-year local tax, corporate tax and income tax, and still enjoy 50% tax benefit after the expiration; fixed assets of newly built enterprises The depreciation rate has increased from 5% to 25%. The French government also stipulates that for every new employment opportunity for SMEs, the government will provide financial subsidies of 20,000-70,000 euros. For newly-added SMEs with more than six employees in three years, each newly-increased employee will be subsidized by the local territorial remediation department. 12,000-1.5 million euros; for the service industry with more than 30 employees in three years, each additional employee will be subsidized by the local territorial remediation department of 10,000-20,000 euros; for SME research and development funds can subsidize 25% of its investment; Small and medium-sized enterprises that employ young people and single women are also given certain subsidies; for energy-saving enterprises, each subsidy of 1 ton of oil is subsidized by 400 euros.
The government's loan assistance to small and medium-sized enterprises is the most needed part of the SMEs' initial creation, technological transformation and export, including loan guarantees, loan interest subsidies, and direct government preferential loans.
The US Federal Small Business Administration guarantees loans to commercial banks with credit for small businesses. The Federal Small Business Administration provides guarantees of 75%-80% of total loans, and the rest is borne by commercial banks. The Federal Small Business Administration guarantees a maximum loan of $750,000. The Federal Small Business Administration then classifies lending institutions participating in the secured loan program based on the experience and performance of financial institutions' small business loans, and adopts different approval procedures accordingly. The risk loss of a secured loan is treated as a risk by the government budget.
The Japanese government's financing policies for SMEs mainly include: providing long-term low-interest loans for small and medium-sized enterprises that are difficult to obtain loans in general financial institutions; for newly established enterprises, enterprises with difficult operations, enterprises that are not willing to lend financial institutions, and those under 20 Small-scale enterprises provide unsecured and unsecured micro-credit loans; they provide convenient financing and stable financial support for SME groups through the issuance of discounted, interest-bearing and interest-paying financial bonds. The country has established specialized financial institutions for loan assistance for SMEs. At present, similar financial institutions include “SME Financial Public Libraryâ€, “National Financial Public Libraryâ€, “Commercial and Industrial Portfolio Central Treasuryâ€, and “Environmental Health Financial Public Libraryâ€, which provide 2-3 SMEs below the market. A longer-term concessional loan with a percentage point. The government has also established a “credit guarantee association†and a “small and medium-sized enterprise credit public library†to provide guarantees for small and medium-sized enterprises to borrow credit from private banks.
An important way for the British government to encourage the development of small businesses is to provide small and specific financial assistance to small enterprises, and to solve investment development problems for small enterprises that are more difficult in terms of funding sources. Since 1981, the British government has implemented a small business lending guarantee program to provide loan guarantees for small businesses that have a viable development plan but have no loans due to lack of credibility.
The venture fund is a special investment fund created by the government or the private sector to provide high-risk and high-return rates for high-tech SME innovation activities.
Most of the European and American countries were founded by the private sector, and Japan was mainly established by the government.
The US's risk funds are the most developed, covering more than 500 “small business investment companies†across the country. Most of them mainly provide funds to high-tech SMEs. Each year, more than 70,000 small enterprises in the country receive more than 10 billion US dollars of venture funds. In the mid-to-late 1970s, Japan implemented a policy of knowledge-intensive and high-tech for small and medium-sized enterprises, and encouraged government financial institutions to provide “risk investments†to emerging high-tech SMEs. Since then, there have been more than 20,000 “risk companies†in the country, and these small and medium-sized enterprises have grown rapidly. The UK has set up a dedicated “risk capital association†consisting of more than 100 small financial companies engaged in venture capital investment in small and medium-sized enterprises, providing a large amount of financial assistance for high-tech “risk companiesâ€.
Small and medium-sized enterprises are small in scale, and their stocks are difficult to compete with many large companies in the general stock exchange market. In order to solve the problem of direct financing of SMEs, some countries have explored the opening of the “second sectorâ€, which provides direct financing channels for SMEs, especially SMEs.
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