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

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 challengesthrough 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.