role and functionality in China national However， lack of fundings， under-diversified ways of raising funds， few funding options， and are common problems for China's many SMEs， especially for those that are in development stage whose funding problems are more prominent， and it is severely affecting the healthy development of these SME Difficulties in raising funds and obtaining lines of credit are limiting enterprises' development， solving these difficulties are the emphasis of government and the focal point of the society， furthermore， global economic crisis worsen the problems for SMEs to raise Due to the low ratio of net loan and low coverage in SMEs， a significant number of SMEs are suffering from lack of funding， and are in either shut-down， half shut-down， or close-down The key reasons in fund raising difficulties for SEMs are that compared to large enterprises， SMEs are smaller in size， less consistent in profit， lower in reputation， weaker in risk resistance ability， and there are less qualified assets that can be pledged as Therefore， SMEs have weaker position in a competitive market and thus， difficulties in raising funds for SMEs are capturing the attention of the government and all walks of society， who are actively seeking for This article brings up strategies and suggestions to solve problems in fund raising for SEMs based on analysis of the causes and the problems of the current difficulties in raising funds for SMEA
