Research On The Impact Of Microfinance On Women's Entrepreneurship In Jiamusi City

Since the birth of microfinance in 1960s and 1970s, it has achieved sustainable regional development of the poverty alleviation projects depending on the new type credit operating mode as an effective poverty alleviating approach and financing service, which has generated positive and effective results in many developing countries and providing a new path for the poverty alleviating activities for women in of these countries. Some countries in Asia and Latin America such as Bangladesh, Indonesia and Bolivia etc have all adopted a series of measures, taken a tolerant attitude and supported its growth, which integrated microfinance into the national financing system and accomplished profits and sustainable development.Microfinance has won extensive development in the global scope, currently spreading from parts of the global regions to almost all the developing countries and parts of the advanced countries. Statistics of the World Bank show that presently there are more than 7000 institutions issuing micro credit in the developing countries, providing credit service for 16 million underprivileged population and the global circulation fund is estimated to be up to US$2.5 billion. Microfinance has provided quite a few successful experiences for China in the extensive development of the global scope.The most successful representative of the project of microfinance is the Bangladesh Rural Bank which was founded by Dr. Muhammad Yunus in 1970s and whose objectives of credit were primarily underprivileged women. Since the running mechanism and the setup regime were relatively perfect, it witnessed gigantic effects and enjoyed the reputation as one of the best poverty alleviation projects and methods, receiving extensive international praise. At the current stage, this mode of rural bank has caught the attention of many countries and has been duplicated by many countries, constituting one of the major international models of microfinance. Besides Bangladesh, it has been presently tested and promoted in more than 50 countries and regions in the globe. China has begun to introduce the mode of microfinance since 1990s on the basis of learning from the mode of Bangladesh Rural Bank with some adjustment and innovation, bringing remarkable effects. China's process of microfinance can be divided into four stages: first, pilot incipience (from about the beginning of 1994 to October 1996). This period was primarily for the small scope and scale of testing and research conducted by some societies, non-governmental organizations, overseas funds or self-raised funds; second, the period of project expansion (from about October 1996 to 2000). This period saw the pilot testing continuously conducted by some societies and non-governmental organizations through overseas capital and the vigorous promotion in the poverty-stricken areas under the cooperation of the government, the Agricultural Bank and the Agricultural Development Bank mainly through the domestic poverty alleviation funds; third, the perfection of system period (from about 2000 to 2005) when the nation-wide rural credit cooperatives began to try out the popularization of micro financing activities and the urban micro financing testing began to be launched; fourth, pilot period of commercial micro financing institutions (from approximately 2005 till now) when the encouraged privately-owned and overseas capital successively entered the underdeveloped regions and the newly established postal savings banks gave priorities to the development of rural microfinance services. In recent years, under the highly priorities and vigorous support of the Chinese government, microfinance has won swift and violent growth, enjoying the welcome of the immense users of microfinance. The State Council, the People's Bank of China and the Agricultural Bank of China have issued related policies in support of the women to take advantage of the capital provided by microfinance to shake off the poor situation and ameliorate the living conditions. Nevertheless, what is the worst scenario is that microfinance is beset with difficulties in China and has not given full play to its own advantages in women's establishing a business in addition to some problems that cannot be ignored, which is not only connected with the normal order of the credit market but also related to the sustainable development of microfinance in the years ahead, and even more to the smooth development of women's establishing a business in an upcoming period.This paper introduces relevant studies at home and abroad on small amount credits supporting women's entrepreneurship and an overview to the women's entrepreneurship in Jiamusi City of Heilongjiang Province, careful analyses are made on influences from small amount credit on women's entrepreneurship in Jiamusi City, hence, suggestions are proposed on alleviating negative influences from small amount credit on women's entrepreneurship, so as to enable the healthy development of small amount credits in future, and to grant development funds to many women in Jiamusi City for entrepreneurship, to enable more women in Jiamusi City to make full use of the small amount credits, and to widen the beneficiary range of the small amount credits and to achieve better use.The major contents of the paper are as follows:Chapter I is the introduction, which introduces the study background, and has conducted a brief illustration on study approach and study innovation points.Chapter II mainly introduces the development of overseas small amount credit and its major types, analyzes the characteristics and successful experiences of overseas small amount credit projects, meanwhile, introduces the development and relevant policies of domestic small amount credit and the different opinions at home and abroad toward the entrepreneurship from women by resorting to small amount credit.Chapter III mainly introduces the overview to the women's entrepreneurship in Jiamusi City and their fund sources with Jiamusi City of Heilongjiang Province as an example, and an in-depth analysis is made on the status quo of women's entrepreneurship in Jiamusi City through summarization and analysis of the investigation data. Chapter IV analyzes the influences from small amount credit on women's entrepreneurship particularly the negative influences in Jiamusi City through analyzing the demands from women in Jiamusi City on small amount credit for entrepreneurship.Chapter V proposes the suggestions on alleviating the negative influences from small amount credit on women's entrepreneurship in Jiamusi City. For example, loosen the application conditions of small amount credit, perfect the credit investigation system of small amount credit, take flexible and effective line of credit and deadline setting, and adjust the small amount credit interest rate, etc.Chapter VI Summary and expectations, with the continuous solving of problems affecting women's entrepreneurship in small amount credit, the small amount credit has a very promising prospect, and there will be more and more women employ this financial tool for entrepreneurship in Jiamusi City, so as to improve their economic conditions and to elevate their social status.