Cases Studies Of Small Micro-finance Development In Jining R.C. Rural Credit Cooperative

Since 2014, China’s economy has shifted gear from the previous high speed to a medium-to-high speed growth, the economic structure is constantly improved and upgraded, and the economy is increasingly driven by innovation instead of input and investment, all of which demonstrate that China has entered a period of “The New Normal”. Meanwhile as the main body in market economy, the enterprises, especially the majority of small and micro enterprises(SMEs) generally are facing various problems such as weak demand, overcapacity, rising costs, and financing difficulties. The current situation causes challenges for China’s economy during shift period.In order to help China’s economy during shift to relieve the pain, Premier Li Keqiang has promised to develop inclusive financial system so that all market players can enjoy the financial services during The Two Sessions(NPC and CPPCC) in 2015. He has proposed that financial institutions are supposed to maximize the provision of adequate and effective financial services to all sectors of society and groups, mainly SMEs with financial service needs.In the light of this situation, Premier Li also pointed out that more emphasis should be placed on “directional control", which is the further innovation and deepened reform of macro control, or in other word, the upgraded version of the interval control. The directional drop of deposit reserve ratio and taxes aims at helping millions of SMEs survive and overcome difficulties.With the deepening reform of China’s economic transformation, it has become an inevitable choice for China’s economy to rely on the support from financial institutions to business. Since it is complex and systematic to provide accurate and effective support for business in reform, financial institutions need to adjust and rebuild the existing framework and mechanism. In the last two years, financial institutions have made great achievements by focusing on supporting the real economy under the government’s support and guidance. Nevertheless, SMEs have faced the existing problems of the financing difficulties and low innovation efficiency, as well the banking industry has not yet established the framework of economic changes under The New Normal. Based on the case study on the development of SMEs financial services adopted by Jining RC rural credit cooperatives, this article compares business theory and practice development of SMEs at home and aboard, reveals the constraints, and offers proposals to carry out financial services targeted at SMEs. Details are as follows:Chapter One is the introduction. This part firstly introduces the background and significance of this topic. Secondly, it systematically summarizes the research on SMEs at home and aboard, and briefly reviews some related theories. Lastly, this part briefly elaborates the main contents, research framework, research methods and ideas of this paper.Chapter Two is the theoretical basis of Small and Micro Financial Business(SMFB). This part firstly gives the definition of the SMFB, and then systematically summarizes the research on SMFB at home and aboard with respect to the vision of development, laying the theoretical groundwork for further discuss in Chapter Three.Chapter Three is about the comparative analysis of the development of SMFB at home and abroad. This chapter summarizes and compares the successful development experience in SMFB among four countries: the United States, Japan, Bangladesh and Germany. Compared with the domestic cases in SMFB, this chapter sums up cash experience, summarizes their characteristics, and compares their similarities and differences, and finally sums up the development of SMFB model in contemporary China.Chapter Four uses the example of Jining City RC Rural Credit Cooperative Union as to study the development of SMFB in China. From the perspectives of Rural Credit Cooperative Union in Rencheng District, Jining City, this chapter collects a rich supply of cases and data about SMFB in daily work, gives a detailed description of current situation of SMFB, and ends up with major difficulties in SMFB in China.Chapter Five puts forward countermeasures and suggestions for SMFB. As the foothold and the aim of this paper, Chapter Five attempts to propose countermeasures and suggestions for the current development of SMFB in China, based on the above research achievements.