The SWOT Analysis Of Community Rural Credit

This paper studies rural microfinance in perspective of community work by taking field research and interviews in Puhan Rural Community, Yongji, Shanxi Province, as well as reviewing relevant literature, using the method of SWOT analysis, to discuss the advantages, disadvantages, opportunities and challenges of community finance. The author finds that microloan based on rural community has much superiority, such as easy operation, less credit risk, and better effect. This paper holds that microfinance in rural community can develop by using the internal local resources and the network of acquaintance society, which are favorable factors for solving the problem of "financial repression" generally existing in the rural areas. But the rural microfinance also has many deficiencies, such as lack of the organizers, management personnel and effective supervision systems. The dissertation concludes and suggests an approach to “finance built in rural community” for developing rural microfinance.This thesis is divided into seven chapters: The first chapter is introduction. It analyzes the background to develop the rural microloan and sets out the policy basis, theoretical significance, practical significance and research methods. The second chapter is the literature reviews. It mainly states some different connotations and development tendency about microfinance, and explains the perspective of community, also introduces some relevant theories. The third chapter is the analysis of advantages on the development of microloan in rural areas under the perspective of community. It illuminates some advantages of rural community microfinance from the following aspects: firstly, farmers own, utilize and manage microloan and get benefits from it. Secondly, the operating process of loan is convenient. Thirdly, it’s easy to control risk. Finally, the business cost is very low. The fourth chapter is the analysis of its disadvantages. It analyzes the problems of the different stages of rural microfinance under the perspective of community and clarifies its regulatory deficiencies. The fifth chapter is the analysis of the opportunity. It refers to four aspects as the opportunities to promote rural microfinance, including famers’ market demands, government policy environment, the new organization platform and land transfer mechanism. The sixth chapter is the analysis of the challenges. It accounts the aspects of macro financial regulatory environment, the competition from commercial microloan companies. The seventh chapter is a summary of developing the microfinance in rural community. It mainly analyzes the significance, effect and social benefit of the microfinance. It also accounts how to apply the method of social work to improve the rural microfinance under the community mechanism.