Research On Ways And Measures Of The Project Financing Of Small And Micro-enterprise

In our country, enterprises in accordance with the size and production value can be divided into four types as the large, medium, small and micro enterprise. Small and micro businesses make up more than90percent of the total number of enterprises in China. Today, China having already become the world’s second largest economy, Small and micro-enterprise as an important part of the market economy of socialism with Chinese characteristics, contributes a lot to China’s economic growth.The reason of valuing the development of Small and micro-enterprise lies in its prevalence. Small and micro-enterprise with flexible mechanism has obvious advantages in technology and product innovation etc.. However, Small and micro-enterprise as vulnerable one, has difficulties in project financing and development. Resolving conflicts and the problem, further improvements of the relevant theoretical system are needed such as learning financing channels of small and micro-enterprise from the developed countries. This paper describes the service system and financing environment in the United States, Germany, and Japan pointing out their experience for China as reference. Based on social practice and research, this paper analyzes current situation of the project financing of small and micro-enterprise in China and its causing factors and defines the concepts as project finance and non-materialized finance of small and micro-enterprises etc. The objects of this paper are to put forward effective ways and related countermeasures for the small and micro-enterprises to finance relying on projects financing.Firstly, this paper describes the situation of small and micro-enterprise in China, finds out problems in small and micro enterprise’s financing, figures out the causes of difficulties in financing of small and micro-enterprise in China, and focuses on analyzing internal and external financing environment of small and micro-enterprise. In the internal view of small and micro-enterprise, weakness of strength, shortage of funds, non-standardized management, low credibility, asymmetric information and other factors hampered their progress of project financing. In the external view, supporting policy from government, financial service system, and social service system are still lagging behind the overall demand for the development of small and micro-enterprise.Secondly, this paper puts forward effective ways of project financing for small and micro-enterprise, to be specific government supporting policies for small and micro-enterprises financing should be sustainable and systematic, the capital market space should be expand; the range of financial services for small and micro-enterprise should be enlarged and the service system of small and micro-enterprise should be improved; updating and development of financial product should be promoted.Finally, to analyze effective ways of project financing for small and micro-enterprise and to fully learn from small micro-enterprise supporting policies in developed countries, this paper utilizes literature research, quantitative analysis, directional analysis, surveys, contrast, specification, and empirical analysis methods. Project financing of small and micro-enterprise countermeasures are proposed, including improving policies and regulations system, continually tapping the financial system and the potential of the capital markets, improving and expanding the credit system, taking advantage of the advanced modern information technology and e-commerce platform.