Small Loan Company Business Model And Case Analysis

Microfinance is a global challenge. For China, it has become a pressing issue to be addressed. Pilot projects on microfinance companies are a big step forward in China's long-awaited microfinance attempt. Relevant research and study on its operation and policy environment is needed to facilitate its sustainable growth.This article introduces the concept, industry characteristics and basic functions of microfinance, analyses the evolvement and trend of microfinance institutions, and describes the cases of world's successful microfinance institutions which can be used as reference for China's microfinance development.The launch of China's microfinance project originated in the state's financial policy support for rural development. It's different from ordinary commercial banks. Under this background, the article focuses on the issues related to evolvement of microfinance companies' operation mode, such as its mechanism, main characteristics and remained problems. It also explores the possible paths of development in the future.Based on the above introduction, the article makes a case study on Shanghai Baoshan Shennong Microfinance Company. Issues related with government policy requirement, company structure, operation mode are introduced. Theoretical framework and logical basis on China's microfinance are displayed through such a study.