Personal Information Of Micro-and Small-Entrepreneurs And Credit Constraint Of Micro-and Small-Enterprises

The Micro-and Small-Enterprises (MSEs) mainly include the personal merchants, micro enterprise and small enterprise. Because the amount and share are quite large, the MSEs has already become the support of national economy for our country. Those MSEs could not be replaced on promoting the economy development and stimulating the growth of employment.According to the China Household Financial Survey Report 2014, it shows that there are 25.8% MSEs having formal credit demand among 58 million MSEs. However, only 46% could obtain the credit in these MSEs. At the same time, it also shows that 11.6% of these MSEs are refused by the bank, and 42.4% of these MSEs are not trying to apply a loan.This paper has used the data from China Household Financial Survey (CHFS), in order to discover the influence from the personal information of entrepreneurs toward the credit constraint for those enterprises which the entrepreneurs controlled. This paper has designed a Logit model to regress the data from CHFS, which includes both parts about the entrepreneurs' personal information and features of those enterprises.However, the personal information of entrepreneur is quite complicated, including the age, education, career experience, family, social background and so on. What kind of personal information of entrepreneur would be refused by financial institution? If the personal information of entrepreneur would significantly affect the credit constraint of the enterprise. This is the question that this paper would attempt to discover. Through the analysis and regression of 8,000 more samples from CHFS, this paper has discussed the relationship between the personal information of entrepreneurs and the credit constraint of enterprises. It hopes that this paper could promote the research on releasing the credit constraint of MSEs.Finally, this paper has discovered that the education, gender, and age would have relationship with the credit constrain of enterprise; however, the marriage and political background do not have significant relationship with the credit constraint of enterprise. In addition, the age of the enterprise could also affect the credit constraint of the enterprise.