The Study On Micro-credit Company's Sustainable Development Under The Business Model

Micro-credit Company (MCC) is a new kind of micro-financial institution established in China in 2005. As an infant micro-financial institution in China, Micro-credit Company's own special characteristics are questioned by scholars. However, Micro-credit Companies have developed quickly and are operating quite well nowadays. Base on this situation, this dissertation analyzes the sustainable development of Micro-credit Company under the business model. Firstly I present a history of peculiar Micro-credit Company in China. Then I provide a theory and argument of how Micro-credit Company arose independently and not as an extension of banks and why Micro-credit Companies have been so successful despite the peculiarities that I evidence (non-deposits, credit islands, etc.). In my opinion, the unbalanced Chinese economy, the demand-supply gap, the inefficiencies of traditional financial institutions and distortion of microfinance market in China are the main factors leading to the success of Micro-credit Companies. Furthermore, this paper analyzes the existing obstacles that MCCs face under the situation of emerging of Micro-refinancing Company. Finally, this paper gives some suggestions of Micro-credit Company's sustainable development under the extended business model.