Study On The Development Strategy Of Small Business Finance Based On “the Long Tail Theory”

With the rapid development of China's market economy,small businesses have played a significant role to promote sustainable and healthy development of the national economy.They have exerted huge effect on promotion of economic growth,employment,technological advances and tax collection.However,commercial banks pay great attention to those high-quality large and medium-sized customers with high credit rating,broad prospects for development,high management level,relative low risk and great contribution,rather than those small businesses,since they are featured as small scale,low average quality,nonstandard management,low risk-resisting ability,short life cycle and lack of growth.With the advance of market interest rates and increasingly fierce competition among banks,the traditional business and customer structure cannot adapt to the development of market-oriented interest rates,as well as the existing large and medium-sized customers of commercial banks have increasingly diversified their financing channels,bank credit is never the only financing channel.Severe financial disintermediation occurs.With commercial banks emphasize more and more yielding assets,return on capital,earnings excluding of the risk,advantages of small businesses have become increasingly apparent,for example,they occupy less capital;the risk is relatively scattered;they show weak bargaining power and so on.The small enterprise business for commercial banks is not only Blue Ocean full of opportunities,but also important initiatives to answer the financial disintermediation,adjust credit structure and maintain sustainable development.Small businesses show clearer long tail effect in commercial banks operations.In this paper,the author analyses both domestic and foreign commercial banks operating status to study operation problems of commercial banks,applies the "long tail" principle to the small business operation of commercial banks,digs viable business strategies,and takes China Merchants Bank as an example to analyzethe application of "long tail" theory in the small business management from the aspects of marketing,product optimization and risk control.The author also takes China Merchants Bank Tianjin Branch as a detailed example to give proposals for commercial banks' small business operation from seven aspects: costumer-layering strategy,target customers,innovative financing model,risk control system,cooperative mechanism,team building and incentive mechanism.