Comparative analysis on financing models of innovative small and medium enterprises in France and in China

Abstract

For now, innovative SMEs (Small and Medium Enterprises) have become an essential component of the economic fabric in various countries in the world. However, this type of enterprises has always had difficulty to fit into the conventional financial system. Difficulties in financing innovative SMEs have become a major obstacle to ensure their own survival and development in the long term. How to overcome the innovative SMEs' financing obstacles is still a major issue in the modern society and government's concern. Analyzing the financing modes of different growth stages for innovative SMEs in France, learning from the developed countries' success, for instance, France, compared with the financing modes for innovative SMEs in China, the present study proposes recommendation to overcome difficulties in financing for Chinese innovative SMEs.