The Research On Financial Support For Agriculture-related Micro-enterprise

With the development of China’s agricultural industry, agriculture-relatedmicro-enterprises prospered in various places. Moreover, these micro-enterprises aresignificant for the establishment of harmonious society in China by meeting the needs ofpeople at different levels and creating more job opportunities. But the financing issue hasplagued agriculture-related micro-enterprises and constraints to their development.Therefore financial support issue for agriculture-related micro-enterprise development issignificant.This paper analyses the financial support issue for agriculture-related micro-enterprisesystematically and comprehensively. First of all, with a combination of qualitative andquantitative analysis method, the paper studies the financing situation of agriculture-relatedmicro-enterprise and points out that there is a serious shortage of financial support in thedevelopment of this phenomenon. By analysing these reasons detailed, there are someproblems existing the development of agriculture-related micro-enterprise, such asasymmetric information, risk levels are inconsistent, inadequate credit guaranteemechanisms, financial incentives are not strong enough, and so on. Analysis shows that, inthe case of market imperfections and information constraints, raising funds through privatecapital markets is one of main ways to make financial decisions for agriculture-relatedmicro-enterprise. Secondly, agriculture-related micro-enterprises could build theirconstruction of index system of financial support according to the finance and economicdevelopment theory. Then, with an empirical investigation, the paper analysesmicro-enterprise financing environment related to agriculture in Xuchang by accessing tofinance and funding sources. At the same time, for the difficulties of financing, this papercarried out a detailed analysis of the difficulty in financing. Fixed effect model and thequantile regression model analyse these effects of several financing channelagriculture-related micro-enterprise respectively. To a consistent conclusion, the influenceof loans from financial institutions on the promotion of agriculture-related micro-enterpriseis not obvious and is evidence of the situation of insufficient financial support. Finally, forthis current status, the author makes some appropriate policy measures.Present academic studies on the financial support of agriculture-relatedmicro-enterprise are not common. This theoretical study has been indicated problems inChina’s financial support for agriculture-related micro-enterprise through the survey anddata analysis and made appropriate proposals and measures for these problems.