Research On Impact Of Internet Financing On China's Medium-sized,Small And Micro Enterprise

With the continuous development of China's economy,the proportion of small,medium-sized and micro-enterprises gradually increased.These enterprises play a pivotal role in the contribution of GDP,employment,taxation and technological innovation.Enterprises need capital to develop,but it is difficult for small,medium-sized and micro-enterprises to finance from banks and other traditional financial institutions because these enterprises lack sound financial systems and assets and face higher operational risks.In addition,China's financial system is far from perfect compared with the financial system of foreign developed countries.There are no financial services specially provided for small,medium-sized and micro-enterprises.The financing problem restricts the sustained and healthy development of small,medium-sized and micro-enterprises in China.The rise and development of Internet financing provides a new financing way for China's small,medium-sized and micro-enterprise.This paper analyzes the Internet financing mode of China's small,medium-sized and micro-enterprises by using information asymmetry theory,transaction cost theory and financing innovation theory to explore the feasibility of small,medium-sized and micro-enterprises through Internet financing.By comparing the Internet financing model and the traditional financing mode of small,medium-sized and micro-enterprises,this paper makes a research on the Internet financing mode of small,medium-sized and micro-enterprises.The information asymmetry theory,transaction cost theory and financing innovation theory are used in specific mode studies to prove that Internet financing can reduce the degree of information asymmetry,avoid the financial system credit ration,exert financial innovation and reduce the financing costs of enterprises.First of all,with the help of large data and other Internet technology,Internet financing can dig a large number of corporate financial and business-related information and analyze information to determine the rationality of loans,greatly reducing the information asymmetry between investors.Second,banks and other financial institutions are faced with higher risk in the small and medium enterprise loan.Therefore,they are more willing to provide financing services for large enterprises,resulting in financial market credit mismatch phenomenon.The Internet financing services are carried mainly for small and medium enterprises,which can avoid the credit mismatch.That is a kind of financial innovation.Finally,the Internet financing does business online,which can reduce the financing costs.Internet finance as an important supplement to traditional Chinese finance,it can solve the problem of China's small,medium-sized and micro-enterprise financing.Thus we should vigorously develop Internet financing.