Study On Financial Support Of Small And Micro Enterprises In Guangxi

With the rapid development of China’s economy and the continuousimprovement of the system of socialist market economy, the role of smalland micro enterprises for socio-economic development should not beoverlooked. Small and micro enterprises have become the main force ofChina’s national economic development. Small and micro enterprises playa pivotal role in accelerated promoting industrialization, urbanization,and promoting regional economic development, providing jobs, and reducingthe gap between the rich and the poor, so maintain social stability. Smalland micro enterprises also have a strong ability to create many newproducts into the market and improve the living standard of the residents.With the national macro-control, the limited banking money supply, thecomplicated and confusing international economic situation in2010, smalland micro enterprises generally face some difficulties, such as thefluctuation of raw material prices, rising interest rates, RMBappreciation, rising labor costs.Those difficulties result that a largenumber of small and micro enterprises’ funding strand break, or close down,or at the edge of collapse. so that the whole industry chain is facingdifficulties. This shows that small and micro enterprises financingissues need to be resolved at once.Guangxi is in the western region, economic development is laggingbehind, there are many small and micro enterprises.So Guangxi shouldabandon the concept of "encounter", accelerate the promotion of thedevelopment of small and micro enterprises in order to give full play topromote economic development, increase employment opportunities, promotesocial harmony, etc.Firstly, The paper studies the theory and literatureon the financing of small and micro enterprises at home andabroad.Then,this paper analyzes the development and the financingsituation of small and micro enterprises in Guangxi in depth. From two perspectives-small and micro enterprises and financing environment,thepaper analyces of the main reasons of the financing difficulties facedby small and micro enterprises in Guangxi with Large amounts of data. Atthe same time, this paper analyces the financial support systems of theUnited States, Japan, South Korea’s small and micro enterprises. Finally,Financing difficulties of small and micro enterprises in Guangxi mainlyresult from two reasons.firstly, The development of small and microenterprises is too bad, it is difficult to attract the attention ofcommercial financial institutions.Secondly, financial system, financialsystem, laws, policies and regulations are not perfect, financingcharacteristics don’t suit to small and micro enterprises. Therefore,to solve the financing difficulties of small and micro enterprises inGuangxi, small and micro enterprises should improve the operatingconditions of their own development, establish and improve the financialsystem and information disclosure system to improve the overall qualityof staff of enterprises, speed up product development and innovationcapacity. Furthermore, small and micro enterprises should improve theirown internal financing capacity, attempt to use financial instruments inthe capital markets, broaden the exogenous sources of funding. Finally,the Guangxi government should further improve the relevant laws andregulations of the financing of small and micro enterprises to protectthe interests of stakeholders, improve the system of financial supportof small and micro enterprises, use the preferential policies to encourageand guide the commercial financial institutions to carry out financialservices for small and micro enterprises, Give full play to the efficiencyof resource allocation owned regulate and guide private financial,establish and improve the policy guarantee system and commercial securitysystems to guarantee services for small and micro enterprises.