Study Of Micro And Small Enterprises Credit Facilities

The development of micro and small enterprises (MSEs) can meet various needs of people, increase employment and reduce the gap between the urban and rural areas. So, it is important for the construction of a harmonious society. But the difficulty of obtaining external financing is always one of the problems that restrict the development of MSEs. Bank loan is the important resources of MSEs financing, and in china, it is even the most important external financing. Therefore, the study on bank loan to MSEs is significant both in the development of MSEs and the construction of harmonious society. With the furious competition, banks get little and little from the big enterprises. Exploring the solution to finance MSEs can give more profit to the banks, so it is also very important for the banks. The structure of this text is as follows:Chapter 1: Introduction. At first I explain the reason to choose this title. Then I introduce the studies on this question both in home and abroad. At last I give the innovation and structure of this paper.Chapter 2: The definition of MSEs and its bank loan financing. At first I introduce the principle of definition of other countries. Then I introduce the scope of small-and-medium enterprises of china and compare it with other countries. It is obvious that the definition of small-and-medium enterprise is too extensive. It is not the medium enterprises but the micro and small enterprise actually face difficulty in financing. Then I give a new definition on small enterprise of china. At last I analyze the bank loan of MSEs and point out that they also have many difficulties in the bank financing.Chapter 3: The reasons that lead to the difficulty of MSEs bank financing in china. At first I analyze the credit contracts in different assumption on information, credit market structure and interest and conclude that the transparence of information, credit market structure, collateral and credit interest have important influence on the credit contracts. Then according to the credit contract theory and the reality of china, I...