Study On The Sustainable Development Of Micro-credit Companies In China

Financial institution in China doesn’t provide enough financial service to smalland medium-sized enterprises and micro-enterprises because of the restrain ofstructural finance, so that informal financing activities and loan-sharks whichinfluence the economic development directly are prevalent nowadays. The birth ofmicro-finance symbolizes the deepening of financial innovation. Since its birth, ithelped small and medium-sized enterprises and micro-enterprises to solve financingproblems. However, there are many problems in the development of micro-financecompany.Except for its fexible operation, simple procedure, good market and easytransformation, micro-finance company still has some disadvantages, such as capitalbarrier, lack of creativity, heavy taxes high cost, bad regulatoin, credit referencebarrier, hard control over illegal activities, ext. The thesis provides rationalsustainable development programs to solve the current situation of micro-financecompanies scientifically and reasonably. It has practical significance to thedevelopment of micro-finance companies.The author hopes to through SWOTmethod, expounds the advantages, disadvantages, opportunities and risks of suchkind of finance companies. During the process of six regulations, the author hopes topropose how to set up performance indicator system, sustainable developmentindicator measurement, cost control management, interest reate pricing regulations,best market positioning regulations, risk prevention measurement, supervisionregulation, fiscal policy and financial policy support regulations. The author hopesthat all the contents mentioned above will make a reference for micro-financecompanies development.This paper includes five chapters. The first part mainly introduces the researchbackground and meaning of the research, and gives a brief introduction of theories used in the paper as well. Chapter two discusses the theoretical basis of themicro-finance companies’ sustainable development and argues the relationship oftwo modes of micro-financing: welfare loaning and commercial loaning. Chapterthree describes the origin, development and evolution of Chinese micro-financecompanies. Chapter four analyzes the current situation of micro-finance companies,and through SWOT method, expounds the advantages, disadvantages, opportunitiesand risks of such kind of finance companies. The last chapter proclaims thesustainable development of micro-finance companies from management regulations,operation regulations, market positioning regulations, risks management regulation,supervision regulations and policy support regulations.