The Study On Transition And Development About Micro-Finance Company In China

Recently, micro-finance has developed in sharp speed in our country, since the government reduced the restrict about private capitals entering the social financial system, which helped many micro-companies and agriculture companies lacked of money to get through their hard time, in finance insistence. But we are also aware of it, with their sharp development, that there are many micro-finance companies closed down due to their bad decisions, there are many obstacles in the way of micro-finance development, like low operating ability, lack of supervision and little financial supplying. As to our micro-finance, it will be the choice between life and death about how to take effective measures to help our micro-finance to get transition. The micro-finance’ development in our nation, on the one hand, it has great potential because of there are so many micro-companies and agriculture companies need money to operate; on the other hand, it would also be a big challenge for micro-finance for their bad survival environment. The article is on the point of true essence about micro-finance, with considering our special finance system, and analyzes the issue, in an order of the micro-finance function, the problems we are facing, the necessity to take measures to transit and available choices for transition. And finally, provide some individual suggestions for our-government on how to help our micro-finance to implement their finance functions and develop better in future. The article analyzed the essence of micro-finance firstly, pointed out that, as an effective way to provide money to many micro-finance companies, micro-finance is a kind of supplementary to our finance system. So, it must operate in a reasonable way. Secondly, our government’s pace is very slow about the supporting polices on micro-finance, which created an awful environment for micro-finance developing. Thirdly, there are many bad phenomena in the micro-finance company daily operating, like ignoring the micro-finance true essence and managing in an risk way, employees mostly are unprofessional, operating without standard process. So, it’s necessary to find a good way for transition, and the article provided three choices for choosing-Private bank, local operating and Supply chain finance. Lastly, the article suggested the government to definite micro-finance and make more polices to help it develop better.