The Research Of Luzhou City Government Strengthen The Small & Micro Business Credit Financing System

The development of every country’s economy can not develop without the main contributions of small & micro business in the world. The small & micro business is becoming the primarily part of the country’s economy. The small & micro business can make the country’s economy prosper, strengthen the market competitive edge, provide the employment opportunities, promote the social stability and harmony, improve the structure of national economy. At present, Chinese small & micro business is still faced with numerous severe challenges; these are not only complicated and variable external environment, but also the increasing unpredictable factor, severely competitive environment. The further development of small & micro business is seriously restricted by the present bad situation. The world financial crisis was an enormous shock to Chinese small & micro business in 2008. Because of effective efforts of our government, the effect of economic shock, which Chinese small & micro business faced, was relieved to a great extent. But Chinese small & micro business is still faced many problems. One of these problems is that Chinese small & micro business has difficulty in raising capital; it should restrict the further development of Chinese small & micro business. Although the economic output of Chinese small & micro business is accounted for 60% of the total economic output, the percentages of getting bank loans of the small & micro business is only accounted for 20% of the total bank loans. So the small & micro business resolves the financial problem only by informal channel, and it must increase the real burden of debts. Because Chinese small & micro business has difficult in raising capital, it becomes the primary factor which restricts the further development.The cases of Luzhou city small & micro business financing are discussed in this paper. The recent development, the system of financing and difficulties of Luzhou city small & micro business are described in detail. And especially the financing problems as the main problem are analyzed in this paper, we try to find the factors of financing difficulties adopted by the Luzhou city small & micro business financing recent years data, including small & micro business themselves, financial institution, financing external environment. Luzhou city small & micro business financial support problem can not be completely resolved by only one way. The effective methods to resolve the financing are by constructing multi-layer system. Those are financial policy(the dual policy support from the central government and the local government is needed), financial market system(the dual construction support from the financial market and the credit system is needed) and financial organization(the dual capital support from the formal finance and the informal finance is needed).At last, we try to give some advices to Luzhou city government to resolve the problem. Moreover, it could provide the reference and reference for the other areas about the Small &Micro business financing.