In the present day, SMEs are getting sturdier and maintain to give to the social and economic development of the economy. Obviously SMEs in China put forth the identical role as SMEs in other countries, which is primarily articulated through advancing employment, technical novelty, instruction of entrepreneurs, building up global economic dealings, speeding up market competition, keeping up economic vitality etc. however, what we come to exclusive for SMEs in China is that, SMEs have wide-ranging effect on the transition of economic and social formation in China. For case in point, the enlargement of non-public-owned SMEs not just transforming the enterprise rights composition, but as well lays an essential groundwork in the progression of building up market economy in China. SMEs in developing country find themselves in handicap position when it comes to uncomplicated access to financial services, particularly when it comes to comparing SMES access to financing in developed countries. One of the major hurdles of fostering SMEs in such country and particularly in China is deficiency of financing in developing countries, where if financing is accessed adequately and conveniently, it will play foremost role in expanding growth of the economy, create large scale employment and reduce poverty in these countries (World Bank Report, 2008).