Research On The Credit Of Small And Medium-sized Enterprise In China

Kotler who is called father of modern marketing once said: Small and Medium-Sized enterprisesare truly the engine of growth of any economy. Real development of society relies on small andmedium-sized enterprises driven.With the development of China’s market economy, the number of small and micro enterpriseshave accounted for the vast majority of Chinese enterprises. According to statistics, the number of China’ssmall enterprises accounted for99.6%of the total number of enterprises and provides more than75%ofurban jobs, create wealth accounted for60%of the gross domestic product (GDP) and create tax accountedfor50%of the total national tax revenues. They greatly promoted the development of China’s economy,which are an important part of our economy. It not only to meet the needs of people at different levels, butalso can provide jobs and expand employment and social stability, promote the building of a harmonioussociety. At the same time, the small and micro enterprises are new force of technological innovation. Theyare an important source of scientific and technological innovation, which promote the progress of socialscience and technology.Despite the rapid development of small and micro enterprises, but they’re still facing variousdifficulties of in the process of production and operation. Overall, most of the small and micro enterprisesare small-scale, low output value, which in the end of the industrial chain and the value chain. The ability towithstand a variety of risks of most enterprises are weak, the event of domestic macro-control, orfluctuations in the world economy, small and micro enterprises often bear the brunt of the impact, reducedoutput, and economic decline. Small and micro enterprises generally faced with the problem of high cost,high tax burden; employment difficulties, difficulties in financing. And difficulty in financing is the mostprominent in all these problems.The financing difficulties of small and micro enterprises both related with themselves and thebank. From small micro-enterprise’s own interests, because of the small-scale, capital risk, can not achievethe direct public financing harsh conditions of the GEM market or small plates market. While small andmicro enterprises have small scale production, low ability to resist risks, low competitiveness in the market.Most of them also take Family-run management mode in the operation, which have a simple loose organizational structures, property ownership is not clear, low management level and did not establish amodern enterprise system. There is a false financial statements and not perfect financial system; Weakawareness of credit, and there is the phenomenon of bad faith, deliberately misrepresented its financialindicators, even malicious withdrawal of funds for bank loan fraud, evasion of bank loans, to obtainbenefits from the harsh. And the lack of collateral as collateral, exacerbated by the credit rare situation ofsmall and micro enterprises.Angle from the bank, commercial banks are struggling to increase lending to small and microenterprises, but there are still many factors restricting the intensity of commercial bank loans to small andmicro enterprises. The banks are reluctant loans to small micro-enterprise, probably due to the followingaspects:(1) Problem of information asymmetry. Commercial banks is difficult to fully grasp the operatingconditions of small and micro enterprises, small and micro enterprises may conceal unfavorableinformation to obtain bank loans, so prone to adverse selection and moral risk caused by asymmetricinformation.(2) The credit rating system for commercial banks to small and micro enterprises imperfect.The credit rating for corporate customers in the past, it relative lack of the rating system for small andmicro enterprises. But the rating system for corporate customers prefer the size of the business, in the pastvalue of enterprises, ignoring the growth of the enterprise, this rating system is not suitable for small andmicro enterprises rating.(3) The cost of the management of the commercial banks to small and microenterprises is far greater than the large and medium-sized enterprises, under the guidance of the purpose ofcommercial banks operating for-profit. The bank like big business loans, do not like the small and microenterprises microcredit when choosing a business. Otherwise, the collateral requirements for commercialbanks to small and micro enterprises are too high, and lack of specialized financial products for small andmicro enterprises.For the above, this article attempts to put forward some views on the solution of these problems,and come up with strategies respectively from the angle to small micro enterprises and bank. In addition,from the Government’s point of view, the government should strive to provide a good financialenvironment for small and micro enterprises, establish social credit system including credit rating andcredit guarantees for small and micro enterprises. At the same time, the government should work toimprove the relationship between the banks, businesses and government. Improve its system of social services, and provide a high-efficiency, low-cost loans social environment for small and micro enterprises.Solve the financing problems of small and micro enterprises together.Paper is divided into four parts:Part I The Introduction: First, there is a brief discussion of the significance of the study of smalland micro enterprises, and a simple introduction of papers overall framework.Part II Introduce the definition of the small and micro enterprises, and analysis of the currentsituation of small and micro enterprises, and small micro-enterprise the historical credit process and riskanalysis.Part III Analysis of the reasons for the small enterprise credit difficult from the point of view ofsmall micro-enterprises and the bank’s,Part IV Combine of small micro-enterprise credit difficult situation to explore each of the smalland micro enterprises, banks, government should be how to solve the problem of financing small and microenterprises.