Financing dilemma for small business is a world problem while China' s small businesses face more serious financing con- straints. Affected by the subpfime mortgage crisis and European debt shock, together with the effect of the national policy on their fi- nancial support to be further highlighted, financing and survival condition of domestic small businesses are both of great concerns. By re- ferring to related latest research literature and China' s actual development, this paper extends theoretical discussion on external finan- cing chann...