Picture 2 Sources of financing of SMEs development in Russia

Date: 2015-10-07; view: 502.

Formal sources of external funding are usually divided into two types: loans, ie the use of leverage and corporatization, ie assignment of share of capital. According to foreign researches capital structure of the enterprise depends more on the financial system prevailing in the country, from its traditions and culture than on the characteristics of the organization, which include size, profitability, activity, period of existence. In Western literature there are two types of financial systems: based on the activities of banks and based on the financial markets. In the first system banks play a crucial role in the financing (Germany and France). While and in the second system in a competitive environment the most developed forms of financing are the issuance of shares and bonds (UK, USA). For the Russian Federation the common system to finance SME is obtaining bank loans. Corporatization as a form raising funds at current stage of development of our country is only available for very large companies, which often are composed of foreign capital. The more detailed information on lending to small and medium-sized enterprises will be showed in the next chapter.

Thus, all the sources of financing SMEs can be divided into internal and external. The sources related to internal funds are generated in the course of economic activity. In turn, the external forms of financing can be divided into formal and informal. Informal sources typically include personal savings of founders and participants, as well as help from relatives, friends and acquaintances. The structure of formal sources consists credit and corporatization. In foreign countries as well as in Russia, the largest share in the financing of business development for small and medium-sized enterprises have retained earnings and personal resources of the founders and participants, ie. domestic sources of financing.