Research Of Small Loan Companies Supporting Small Business

As our new financial institution developed in recent years, the small loan company has a very important significance to the country’s real economy. The good development of small and micro enterprises is very important during the important period of China’s economic structural adjustment. However, due to the characteristics of small and micro enterprises themselves, they often encounter difficulties in their financing. In this context, small loan companies need to support the small and micro enterprises. Since the domestic microfinance company pilot program began, the data of small loan company has been hard to get and the related research sill rare. We need pay more attention in this area. In this paper, the author used valuable data of Shandong Province small loan companies to support the small and micro enterprise development research, expecting the conclusions and recommendations will benefit the development the small and micro enterprises in the further.By combing the related theory, this paper found ways to ease financing difficulties of small and micro enterprises at this stage comply with China’s national conditions.This paper explained microfinance company can indeed have the ability to help small and micro enterprises in financing by theoretically. By empirical research, this paper verified that whether the original purpose of establishing small loan companies to is achieved, and whether the small and micro businesses get better development than before. The results show that small loan companies can really help the development of small and micro businesses. However, in the case of the overall tightening of credit conditions, those small businesses that are better qualified received more help from the small loan company. With these conclusions, we are more confident in the future development of small loan companies.After the research above, this article continued to explore how to make better use of the small loan companies to support small and micro enterprise development. Another aim of this article is to attempt to ascertain what factors affect a small loan company credit support to small and micro enterprises. The empirical results show that these factors include small loan company’s shareholder structure, asset-liability ratio, the proportion of the general staff, operating duration, asset size. All these will have an impact on the small loan companies to distribute small and micro business loans. Also External financial environment has an impact on small loan company small and micro enterprises.The previous conclusions have proved positive effect of small loan companies to small and micro businesses. It is equally important how the companies engaged in small and micro business services affect small loan companies in turn. If it is not conducive to their own development, the small loan company will no longer lending to small and micro enterprises gradually, small and micro enterprises will not be able to get financing. If the small and micro business loans small business loan will promote the healthy development of the company, then the final outcome is a win-win. So in the last part of this paper we explored the impact on the Small loan company. The empirical results show that there was a significant positive correlation between the two. It shows us the bright future of a small loan company and the common development of small and micro enterprises.