Research Of Chinese Micro-enterprises Financing

In china, most of non-public enterprises are micro-enterprises.These micro-enterpriseshave been one of the mainspring of Chinese economic growth and development duringpast ten years. Financing has been the main issue of the development of micro-enterprise.Financing difficulty has also been the bottleneck for growth of micro-enterprise. Thisproblem is becoming more prominent especially after the financial crisis. It is not only atheoretic subject but also a practical subject to analyze and solve this issue correctly. Itdepends not only on improving knowledge but also on facing the problem directly toexplore a sustainable and reproducible business model to realize a win-win for enterprise,bank and government, finally promote our economic structure microeconomic structure tobe more reasonable.Starting with the development status of micro-enterprises and investigation, this paperanalyzes the main channels and micro-enterprise financing problems, studies emphaticallyexternal financing problems of micro-enterprise and analyze the reasons of financingdifficulty from internal and external aspects. Micro-enterprise financing difficulty has beena worldwide problem. Difficulty in mortgage and getting loans, and financial supportingservice problems are interlocked. On the one hand, because of the incomplete financialregulations and unsymmetrical information, bank is difficult to do credit grade evaluationfor micro-enterprise fully and objectively. On the other hand, it is also difficult to get loansfrom bank for micro-enterprise due to lack of fixed assets for mortgage.To solve financing difficulty of micro-enterprise is a systemic project, which is toimprove the financing environment through the coordination of government, financialinstitution and micro-enterprise itself. Firstly increase awareness of micro-enterprise,dissipate the erroneous understanding of micro-enterprise and give them equal status. Enhance government funds support system and improve construction of credit guaranteesystem to create a favorable policy environment for micro-enterprise. The existingfinancial institution should ensure the credit policy for micro-enterprise is implemented,run the banks specialized in servicing micro-enterprise and enhance the management ofprivate credit to promote transparency and legalization of it. Micro-enterprise needconstantly improve their own quality, foster a sense of honesty and credit, improveenterprise’s internal management and enhance their own strength to create favorableconditions for financing.