The Research Of Micro And Small Enterprise Financing In China

China’s economy has slowed down these years. Facing this situation, the government decides to transform the economy and set the economic strategy which includes maintaining growth, adjusting structures, changing mode and gaining profit. And the development of MSEs (micro and small enterprises) will badly decide whether the transformation is successful. Because MSEs have occupied an important place in the national economy.97.3%enterprises in China are MSEs which create60%GDP,50%taxes and80%jobs. Although the development of MSEs is very important, it is not optimistic at present. MSEs are facing the pressure of falling of sales revenue and profit. As we all know, financing is critical for an enterprise’s development and profit, so the thesis focus on the subject of MSE financing which is practical.This thesis begins with introducing the present status of MSE financing which includes the definition and characteristic of MSE, enterprise management, financing need, financing channels, credit, guarantee and cost. Through the analysis of the present status, the author find that the difficulties of MSE financing are lack of financing channels, low availability of financing, high financing cost and mismatch between financing mode and characteristic and need. The difficulties are due to the inefficiency of macro control and market allocation, incomplete business environment, unbalance of financing system, financial repression, financial monopoly, and incomplete credit and guarantee system. After the description of difficulties and reasons, the author tries to find the systemic, essential and practical measures to solve the MSE financing problems which include improving the MSE’s business environment to improve MSE’s availability of financing, improving financing channel’s construction to broaden MSE’s financing channels, completing the financing system to solve the problem of high-difficulty and high-cost financing as more as possible, renewing financing mode to match MSE’s characteristic and financing need and enhancing enterprise management to raise the ability of financing.