Research On Financing Of Small And Micro Enterprises In The View Of Incomplete Information In China

Small and micro enterprises are a general term for small businesses,micro-enterprises and individual industrial and commercial households. Financingdifficulties of small and micro enterprises are a widespread problem in the world,since the outbreak of the world financial crisis in2008; the problem of financing ofsmall and micro enterprises in China is more serious. So it has great practicalsignificance to study and solve the financing problems of small and micro enterprisesin china.Firstly, the paper reviews the literature on the financing of small and microenterprises all over the world, then examine the status of the financing of small andmicro enterprises in China. Through theoretical analysis and comparative analysis, Itis conclusion that the financing difficulties of small and micro enterprises in China liein the incomplete information. Because it is lack of personnel management, legal, andfinancial accounting, Small and micro enterprises may not fully understand thefinancing policy and the environment, financing conditions, and other information.In order to solve the problem of financing of small and micro enterprises inChina, this paper draws on the advanced experience of the United States and SouthKorea. Then, the paper puts four-point policy and proposal. Firstly, small and microenterprises should fully understand themselves. Secondly, it must strengthendisclosure of the financing information as well as information of small and microenterprises. Thirdly, financial institutions need to do a positive feedback ofinformation on small and micro enterprises. Lastly, the government should strengthenthe supervision of information and the behavior of small and micro enterprisefinancing.