The Sustainable Development Of Small Loan Companies

The issues of agriculture, rural areas, and farmers, and the financial difficulty in mini, small and middle-sized companies have restricted the economic development in the rural area in China. It has become the priority to solve the issues of agriculture, rural areas, and farmers since it is related to China’s development and people’s life as well as the social stability.Under this background, allowing using non-government capital to establish petty loan company, and adding petty loan business to the agriculture, rural areas, and farmers, mini, small and middle-sized companies and individual business give private capital a legal way to invest. On the other hand, it solved the financial problems of mini, small and middle-sized companies and loaning difficulty of farmers. During the second half of2005, several experimental units of petty loan companies have been established in provinces of Shanxi, Shaanxi, Sichuan, Guizhou, and Inner Mongolia under the leading of the People’s Bank of China, after which, the petty loan companies spread to the whole country. The appearance of petty loan company had a positive impact on solving the loaning problem of agriculture, rural areas and farmers, mini, small and middle-sized companies as well as actively accelerating the financial system reformation in the rural area. After rapid development during these years, petty loan companies meet many problems. This thesis mainly talk about the ability of petty loan companies to serve the agriculture, rural areas, and farmers, mini, small, and middle-sized companies, and individual business and also its ability to realize a sustainable development.This thesis combines theories and practice together. The theory part mainly expounds the researching category, basic theories related to petty loan companies, and the findings at home and abroad. The practice part mainly analyses the basic situation of petty loan company A in Chuzhou, researching the factors that restrict the sustainable development of company A through analyzing its basic situation and competing environment, trying to find out a solution to accelerate Company A’s sustainable development.This thesis firstly introduces the researching background and topic selection basis, reviewing existed literatures about this research; It states the meaning, methods, outlines, researching category and basic theory of this research, separately distinguishing the definition of petty loan, petty loan company, and the sustainable development of petty loan institution, and analyzing the value of the sustainable development of petty loan company. Then, this is the introduction the developmental situation of China’s petty loan companies. Finally, this thesis talks about the petty loan companies’ basic situation, analyzing problems existing in Company A that restrict its development through both macro and micro perspectives. Furthermore, it rises methods to realize the sustainable development of Company A through strengthen Company A’s inner construction and improve its outside environment.The disadvantages of this thesis lie at the limited cases which are mainly Company A in the middle area so that it may not be very representative due to the unbalanced economic development and huge difference among areas in China. On the other hand, the development time of small loan companies in our country is not long, the acquisition of first-hand information is difficult. SO the universal of results of Index calculation is limited. The research for operating circumstance of small loan companies in developed areas maybe is not very full.