Literature Analysis

A Critical Analysis of two articles: “SMEs Financing: the Extent of Need and the Responses of Different Credit Structures” (Daniel, 2010) and “Bank Financing for SMEs: Evidence across Countries and Bank Ownership Types” (Thorsten, 2010)

1. Introduction
From the history of the development of Sino-foreign economic trade, SMEs1 are a powerful driving force of economic development, and they are important channels for employment. They are also the most active micro-entities in the economy. Germany national SMEs are called "important economic pillar”. Japanese believe that no SME development, no Japanese prosperity, The U.S government even calls the SMEs the backbone of United States economic. It can be said that both in the developed and the developing countries, SMEs are the important pillars of economic development and social stability. Even though SMEs accounted about 99% of the total number of China's companies, their share of loan resources is less than 20%. Money is the key of the enterprise, adequate funding is essential to any enterprise’s development. The SMEs financing problem has become the primary bottleneck for the enterprise development.
In this analysis, I want to analyze the differences and similarities between objectives, methodology, sampling, data, findings and other details.

2. Analysis Details
2.1. Objectives
Similarity of Objectives
Both of those similar objectives in articles are to trace the Financing of SMEs in China. All of them want to solve the problem of small and medium-sized enterprises current financing. In view of the circumstance to give relatively correct advices.
Difference of Objectives
Though besides the similar objectives, the two researches also included many different details. The first article Daniel’s research SMEs Financing: the Extent of Need and the Responses of Different Credit Structures. (Daniel, 2010)
Daniel (2010) argued:
“In the economic society and development market, the suggestions about the small and medium enterprises (SMEs) can act as main factors for development, helping economies to restructure quickly in response to changing economic, social and market conditions and the sources of the alternative financing, such as venture capital.”
The second article Thorsten Beck et al wanted to solve the bank credit problems and Suggestions (Thorsten, 2010)

2.2. Methodology
There had two different methodologies in these two dissertations
In the first dissertations: SMEs financing: this article analyzed the Extent of Need and the Responses of Different Credit Structures use Main stated the bank credit problems, and existing data. (Daniel, 2010)
And the research of Thorsten analyzed the European capital magnetic field; use the methodology theories to analysis the main mode of financing (Thorsten, 2010).

2.3. Sampling

In the article of Daniel (2010) he compared the data from different types of financing in the Europe companies. And Thorsten (2010) Using data from Bank scope, we identified the five largest commercial banks in terms of assets in close to 80 countries around the world and invited them to respond to our survey throughout 2007 (Thorsten, 2010).

2.4. Data Collection
The majority of the data came from relevant financial data about the companies. Such as the Annual report, Cash flow statement. Those articles need to research the size of financing needs and the prevalence of bank loans and financial institutions structure and lending to SMEs. Daniel (2010)
And the in the research of Thorsten, he used the data from 91 big banks in 45 countries. (Thorsten, 2010)

2.5. Data Analysis

1. Daniel (2010) believed that bigger markets usually focused, and it was easier to borrow money than the others. In the financial institutions structure, the competition of the SMEs, maybe become the most important effect to the SMEs (Daniel, 2010) .

2. Thorsten Beck found that: