The Influence And Operation Of Social Capital In Self-employment Merchant's Private Lending

As Chinese private economy developing, commercial lending demanding of private economy is rising.But in the current financial system, the formal financial organizations have limited support to the private economy. Thus, private lending account for an extremely important position in commercial lending of the private economy. But in private lending, the commercial lending doesn't follow the general rules, but on the basis of individual credit as a loan.Therefore, social capital plays a very important role in the private lending.This paper studies the influence and operation of social capital in private lending among self-employment merchants with S county in Hunan Province quoted as an example. The sample data collected through questionnaire method and close interview. The paper analyzes the influence which social capital makes on private lending among self-employment merchants and its operating condition by investigating the private lending condition of self-employment merchants, and finally puts forward a series of suggestions from the point of view of ameliorating the financial mechanism. Five parts are included in this paper:The first part is introduction in which the background of study and the relevant studies made by both domestic and foreign scholars, and this study's main content, the theoretical and practical significance and the innovative aspect are also summerized.The second part explains theoretical perspective of this study. The paper sorts out the basic theory and model construction of social capital respectively, and analyzes the theoretical viewpoints that possess practical value.The third part is the design of this study, mainly defining core notions and working variables, and putting forth groups of hypothesis about this study. Additionally, the studying methods and the condition of the sample are introduced at length in this part.The fourth part analyzes the results, which includes the influence that social capital makes on private lending among self-employment merchants in many aspects, such as the possibility, scale, period, interest rate of private lending, and the operating condition of social capital in private lending among self-employment merchants.The fifth part includes the conclusion summed up after the analysis of results and suggestions brought forward on the basis of the basic conclusion.