The Opportunities And Risks Of Small And Micro Enterprises’ Crowdfunding

Small and micro enterprises have become an essential part of our national economy, it plays an irreplaceable role in promoting economic growth, promoting employment,technological innovation and other aspects. However, due to their own imperfections and a number of external factors, the development of small and micro businesses is also facing many problems, the most prominent problem is financing. Although in recent years, the state issued a series of favorable policies to improve the small micro-enterprise financing problem,but the problem has not been fundamentally resolved, small and micro enterprises are still facing a huge funding gap.In recent years, with the rapid development of Internet finance, broadening the financing channels for small and micro enterprises. Crowdfunding as one, changes the original mode of financing and enables the public to participate in the financing process, to make investors achieve a direct docking with small and micro enterprises, coupled with the low threshold,low cost, high efficiency, strong platform effect etc. advantage, has become the momentum to promote small micro enterprise financing. However, the development of crowdfunding in our country is less than four years, there are still many deficiencies and shortcomings in the process of its development. It contains a number of risks, such as small micro enterprise’s decision making of the project risk and project execution risk, public investors’ participation risk and inconsistent interest risk, the platform’s credit risk and security risk, and external legal risk and regulatory risk.This paper used the literature analysis, before scholars research on crowdfunding to finance small and micro enterprises take advantage of what has been reviewed to arrive at writing ideas and innovation of this paper. Secondly, on the basis of theoretical research on the use of the method of case studies were selected "TIME Children’s photography project" and "Nomi more healthy fashion restaurant project" as an example, a detailed analysis of these two projects use crowdfunding to finance process, outcomes and results, by comparing the pros and cons of success and failure to more clearly reflect the small and micro enterprises to take advantage of opportunities and risks faced by the public for financing. Finally, on the basis of case studies on small and micro enterprises are the internal and external aspects put forward some suggestions, for small and micro enterprises in the choice of reference crowdfunding financing. Small micro-enterprise should be optimized crowdfunding project design, such as the development of suitable projects, the establishment of an appropriate amount of financing and effective presentation; improve project performance, reduceimplementation risk of the project. Small and micro enterprises should speed up the external network platform crowdfunding financing platform to improve the internal management system, improve the network security technology; establish a sound credit system of credit;crowdfunding sound legal system and supervision of financing.