Research On The Financing Problem Of Small And Micro Business In China

Small and micro business, which occupied in a large amount of Chinese enterprises,are one of the main contributors of the country’s rapid economy development. However,our country made a unclear definition about small and micro business and it has been along time since we could not seperate small and micro enterprises from small andmedium enterprises(SMEs). This worsens the development of small and microenterprises and especially makes their financing a big problem that needs to be solvedquickly. After the threaten of2008financial crisis, these enterprises have faced a hardtime and more and more commerce has been on them. With the support of Chinesegovernment, small and micro enterprises gain many helps from different industries,especially small and medium commercial banks in China.In this thesis, diseconomies of scale to analyse the reasons why small and microbusiness find difficulties to finance outside. And with using game theory, we can findhow banks and those small and micro business work. For example, the relationshiplending, a famous theory about how to solve the financing problem of small and microbusiness. This thesis uses quantitative analysis as well as case study to make sure whatfunction small and medium banks have on small and micro business’ financing problems.And to find ways and measures from the angles of government, small and micro businessand small and medium commercial banks about how to make a "win-win" effect andrelieve the financing problems of small and micro business.