Abstract:The domestic SMEs’ Capital Structure is irrational The main problems lie in three aspects: SME seldom finances from shareholders; the channel of financing from the outsiders is almost exclusive; the proportion of shortperiod debt is too high The influence factors lay inside and outside, and the inside ones are more important In order to meliorate SMEs’ capital structure, the SMEs’ restriction should be carried on by themselves, the capital market should be improved and the helpful policies should be pushed