Research On The Small Micro-enterprise Exogenous Financing Model

Since the reform and opening, small and micro-enterprises have become thedevelopment of China’s national economy, an active power, and promote economicgrowth, create jobs, narrow the gap between rich and poor, and through the transfer ofrural surplus labor force, are playing a more and more important role. With thedevelopment and growth of small and micro enterprises on only endogenous financing,it by far does not meet its capital demand in time. To raise external funds to supportthe healthy development of small micro enterprises is particularly important, butexternal financing, a difficult problem, has been a bottleneck of our small microenterprise; hindering the further development of healthy small micro enterprises. So,choose high efficiency of the exogenous financing model and solve the difficultfinancing problems for small micro enterprises. China is in urgent need of a strategyto resolve this important problem.This paper uses small micro enterprise as a starting point, and the small microenterprise concepts and related finance theory as a foundation, in view of the actualcondition of external financing of small micro enterprise, and analyses the presentmain exogenous small micro enterprise financing methods and various financingoptions available to the present situation. This paper discussed the various ways offinancing the small micro enterprise and the advantages and disadvantages of externalfinancing; and from the financing efficiency of enterprise, analyzes its influence onthe enterprise. This paper considers small external financing efficiency using2methods of analysis: Grey Relational Analysis(GRA) and Analytic HierarchyProcess(AHP).In this paper, enterprise financing efficiency of the integrated modelfor the five sources (channels) of financing is comprehensively evaluated, at the sametime the use of empirical data of quantitative evaluation and results were verified.Finally, in view of the small business enterprise at present, and the competitivefinancing in the present situation the question, combined with the empirical studyresults, discusses the efficiency of external financing of small micro enterprise’sfinancing in this country and the countermeasures and suggestions and as thebreakthrough point-the best way to arrange and improve China’s small enterpriseexternal financing from the macro and micro levels: a process selection has been proposed to answer the difficult questions.