Countermeasures To Solve Micro And Small Enterprises’ Difficulty Of Financing

Small and micro enterprises are important in our national economy. They play an indispensible role in many aspects, such as promoting economic growth, increasing employment, innovating science and technology, etc. Due to the financial crisis, many unfavorable factors blocked the development of small and micro enterprises, among which the difficulty of financing is severest. The problem of small and micro enterprises’ financing difficulty is thorny all over the world. Financial crisis did not produce financing difficulty directly but made this problem grimmer. The main channels of small and micro enterprise’ financing include internal financing and external financing. However, due to the enterprise itself and the outside factors, nearly62%of small and micro enterprises choose the internal way. In China, the banking financial institutions (especially the five big state-owned commercial banks) dominate in this field, so66.7%of small and micro enterprises choose bank loans in the first place. Over recent years, the state has promulgated a series of policies, which guide financial institutions to put more resources to small and micro enterprises. Meanwhile, tax breaks for small micro enterprise will come into force. Banks also actively explore innovative ways in service, institutions construction and guarantee. The system is to be improved in order to solve insufficient collateral problems. As one of the five big state-owned commercial banks, C Bank surely does not lag behind. Compared with other large state-owned commercial banks and medium-sized financial institutions, C Bank occupies a significantly different market position. The author here mainly studies the small and micro enterprises’financing scheme on the basis of the internship experience in C bank. Through analyzing the problems and consulting the advanced experience at home and abroad, the author puts forward several policy suggestions to improve C bank’s service scheme to small and micro enterprises.In reference to financing difficulty in small and micro enterprises, it is found that the situation mainly manifested in three aspects as following:(1) loan difficulty;(2) high interest rate in private lending;(3) few direct financing.The reasons are various, which include both the causes of the enterprise itself and the causes of banks and other relevant departments. Only through the joint efforts of all departments can the financing difficulty be solved radically. According to China’s current economic background, the banking financial institutions are the mainstay of the financial system. They are obligated to serve small and micro enterprises.Based on the study of small micro enterprise financing difficulty, it is further illustrated that C bank’s services to small micro enterprises are necessary.Through meticulous research of the C Bank’s service to small micro enterprise, the author found that in the institutions, system construction, small micro enterprise credit approval process and financial products and so on, the bank has carried out various aspects of innovation. For example, with the help of the Internet, the whole operation is informationized, which saves the time of examination and approval and improves the efficiency greatly. It is praised by numerous customers. At last, the advantage of C bank’s service scheme to small and micro enterprise is expounded upon through case analysis.Despite C Bank’s innovation in its service to small and micro enterprises, the innovative schemes may be not effective as expected, due to limitations in the process of implying these schemes. Studies have found that in the process of serving the small and micro enterprises, four main problems exist as following:(1) asymmetric information has not been fundamentally solved;(2)the implementation of innovation guarantee means has been trapped;(3) financing costs is high, most of the small micro enterprises are rejected;(4) bank’s internal factors affect innovative solutions.China is still in the preliminary exploration stage in solving the small micro enterprise financing problem, at the same time, C Bank, as a large state-owned commercial bank, also inevitably exists such phenomenon as inadequate experience in terms of serving small micro enterprise. It is necessary to draw lessons from home and abroad in order to take their essence. Therefore, in order to find a solution to the C Bank’s major problems, this thesis mainly studied the domestic and foreign advanced experience, including:(1) referring to the foreign experience, to enhance borrowing possibility, this article selects Korea as object; which is at the same development stage with China (2)referring the domestic banks’ experience,here the author selected China Citic Bank as object, which is a growing mate to small micro enterprises (3)referring the folk finance experience, selecting small loan companies with two years experiences of rapid development as object.Based upon domestic and foreign experience to solve the problem of small and micro enterprises’ financing difficulties, the author put forward suggestions to improve small micro enterprise financing scheme from different perspective such as the bank and the government, etc, which is hoped to exert an positive effect on financing difficulty. At last, this article’s main research content is summarized and its defects are pointed out for further research.