Research On Financial Support Of Folk Finance For Small And Medium Sized-enterprises

Small and medium-sized enterprises(SMEs) have been an important force to promote China's economic growth and social development. With its unique operating mechanism and flexible management model, SMEs play an important role in China's economic development. 2013's NPC and CPPCC data displays, SMEs accounted for more than 99% in the total number of enterprises in our country, making a contribution of more than 60% of China's GDP growth, more than 55% of tax revenue, and provided about 80% jobs for urban and rural areas. However, these SMEs can get only 2% of the formal financial loans, the difficulty in financing is still the primary problem hindering the healthy development of SMEs. For the direct financing channel of our country is not smooth and formal financial institutions just provide little assistance to SMEs, more and more enterprises begin to rely on folk finance to solve financing problems. In this context, the research of folk financial support for SMEs becomes very important and significant.In the first part, the thesis discusses the reasons of the existence of informal finance on the basis of the classical theory, and analyzes the situation of the development of folk finance, found that it's widely distributed and has a broad development space if reasonable used. The second part mainly analyzes the current financing situations of SMEs in China from the three aspects of supply side, demand side and related policies, then find out the multiple reasons for financing difficulties of SMEs. In these complex factors, the formal finance can't provide sufficient financial support to SMEs, we must rely on the folk finance to solve the financing difficulties of SMEs. In the third part, the thesis put the SMEs and the folk finance together and study it from the two angles of microcosmic and macroscopic. In the micro angle, the thesis mainly studies the actual amount of folk financial flows into the SMEs and the reason why SMEs tend to choose folk finance, so as to demonstrate the natural correspondence between them; in the macro angle, the thesis mainly discusses the advantages of folk finance in providing financial support to SMEs and the current unhealthy phenomena and problems, then puts the corresponding policy suggestions, in order to guide folk finance to better serve small and medium-sized enterprises, promote further combination of the two and common prosperity.