The Innovation And Management Of Small And Micro Financial Business In Commercial Bank

With the depending of socialist economic system and financial reform, the good development of small and micro business and the strong demand of financial service which occupy important positions in China’s national economy, are the important basis and the leading factor of China’s economic development. However, because of their own and some external causes, it is difficult for them to access to financial services from commercial bank. At present, in order to follow the national policy direction and also to gain profits, broaden the market, bring about the transition, commercial bank have noticed that the market demand from small and micro business, initiated efforts to develop small and micro financial business.It has become a concerned issue of the Government and academics that what policies should the commercial banks offer to financial services for the small and micro business. Small and micro business is a small organization with its own life cycle which can be divided into four stages: start-up, growth, maturity and decline. Generally, the life cycle of China’s small and micro-enterprises is very short, only about3-5years. In the course of providing financial services for small and micro business, it’s necessary for commercial banks to enhance their small and micro finance benefits, maintain the height of the small and micro business’ long term development, pay close attention to the life cycle stage of small and micro business and base on the financial needs at all stages to build a financing system adapting to small and micro business development. That will eventually promote the sustainable development between commercial banks and small and micro business, achieving a win-win situation.In view of the above, this study is organically combined the small and micro financial business of commercial bank and the theory of enterprise life cycle. And it studies the innovation and management of small and micro financial business in China’s commercial banks according to their life cycles. Firstly this paper gives an overview on the concept and development situation of China’s small and micro business. Then it puts forward to the concept of small and micro business life cycle. With small and micro business’ risk analysis, it also shows the financial demands of small and micro business in all life cycle stages. On that basis and the status analysis on small and micro financial business of China’s commercial banks, it finally presents some suggestions for commercial banks:improving and widening service way, innovating financing mode and strengthening risk management and control. It intends to further strengthen the innovation and management of small and micro financial business.