China's Small Micro-enterprise Financing Difficulty And Countermeasure Research

With rapid economic development of China，commercial activities becomemore frequent．The number of enterprises has also increased，which accounted forover90%of Chinese total number of businesses of small and microbusinesses．These businesses have created much more number of GDP，contributedmore tax and provided more jobs．But the current bank loans offering to small andmicro businesses have been lower and lower. The unreasonable allocation offinancial resources hampers the development of small and micro businessesseriously．Small and micro businesses play an important part of the economy ofChina．The healthy development of small and micro businesses not only plays animportant role in the development of the economy but also in the harmony andstability of the society．How to solve the financing difficulty of small and microbusinesses and promote their healthy and rapid development has been a major issuerelating to the benefits of the country.This paper firstly reviews related theories of enterprise financing,defines thesmall and micro businesses and its financing methods,sums up the foreignexperience to our country comparing to the small business financing of the UnitedStates and Japan. Then from the perspectives of our policies, characteristics of oursmall and micro businesses financing, cases of our banking institutions to smallbusinesses, it reveals financing status of small and micro businesses. It also analyzesthe financing difficulties of small and micro businesses from five aspects.They areasymmetry of information, financial system, financial service system, small andmicro businesses own factor. Facing the rapid development of small and microbusinesses and their huge financing needs, how to make the majority of small andmicro businesses get better financing service, solve the financing problems of them?based on solving internal factors of small and micro businesses and improving theexternal financing environment for small and micro businesses, this paper summarizes the countermeasures to the financing difficulties of small and microbusinesses. Finally this paper introduces the "Ping An Bank&Chu Shang" small andmicro businesses mutual fund guarantee credit model, and promote to apply themodel extensively and flexibly in order to build a mutual growth platform of smalland micro businesses. To solve the financing difficulties of small and microbusinesses need every countermeasures to be put into practice.