Research On Legal Issues Of Private Financing In Small And Micro Enterprises

As a new force of economic development,small and micro enterprises are the most active economic entities at present.It plays a vital role in the development of our national economy.In the face of the overall downturn in the economic environment,the existence of small and micro enterprises has a strong buffer and inhibition,and is the main "output,of development and innovation.It is indispensable to the country's future economic stability and social development.Small and micro enterprises are also an important stage of development for large and medium-sized enterprises.Small and micro enterprises want to develop and expand their own business development strategy and science and technology,the most important thing is to have sufficient funds.Lack of funds is often the biggest obstacle to its growth.Therefore,the development of small and micro enterprise financing is inevitably accompanied by continuous financing process.As for large and medium-sized enterprises,they have abundant capital and naturally become the investment and lending objects sought by fund providers.Moreover,China currently provides sound legal support for large and medium-sized enterprises in terms of both direct and indirect financing regulations.For small and micro enterprises,they are faced with a completely different financing legal environment.From the perspective of the characteristics of small and micro enterprises,it is difficult for small and micro enterprises to obtain financing through formal financial channels due to their small operation scale,imperfect credit guarantee system in China,disordered relevant laws and regulations,and restrictions on lending rules and conditions of formal financial institutions such as Banks.Therefore,the broad market space creates a huge profit and development space for the private financing of small and micro enterprises.At the same time,the lag of the legal policy also greatly increases the possibility of getting rid of the supervision,making its evils become numerous and seriously harming the development of small and micro enterprises.Based on the analysis of the deficiencies of the private financing legal system of small and micro enterprises in China and the sorting out of the foreign private financing legal system of small and micro enterprises,this paper puts forward Suggestions on the improvement of the private financing legal system of small and micro enterprises in China,in order to better promote the development and expansion of small and micro enterprises.This paper consists of five parts:The first part is about the basic problems of private financing of small and micro enterprises,including the legal definition,characteristics.At the same time,the definition,characteristics and main types of private financing are discussed and summarized.Small and micro enterprise is to point to the general name of small and micro enterprise,its main organizational form includes privately operated enterprise,family workshop type enterprise and individual industrial and commercial households.It has the characteristics of large quantity,low revenue,high risk and short cycle.Its existence can effectively alleviate employment pressure,promote economic growth and scientific and technological innovation,and maintain social stability.Private financing refers to the behavior of raising funds conducted by other institutions or individuals other than Banks and other formal financial institutions.It mainly includes traditional private financing,such as private lending,pawnbroking and discount of private bills,and new private financing,such as private fund and Internet financing.It has the characteristics of flexible interest rate setting,huge market and diversified financing subjects.The second part analyzes the fit between small and micro enterprises and private financing.Under the constraints of formal finance,financing channels of small and micro enterprises in China are not smooth and financing costs are high.The main reasons for the predicament include internal reasons such as small scale of small and micro enterprises,imperfect management system and lack of collateral,as well as extenlal reasons such as imperfect policies and credit guarantee system.However,private financing of small and micro enterprises has sufficient private capital,information symmetry between them and also avoids the restrictions on financing from formal financial institutions.Therefore,private financing of small and micro enterprises has advantages.The third part is the legal status quo of financing of small and micro enterprises in China.This paper mainly introduces the legislation status of private financing of small and micro enterprises and the existing problems in the legal regulation of private financing of small and micro enterprises.The current legislative situation of private financing of small and micro enterprises,no matter civil and commercial laws and regulations,criminal laws and regulations or other policy provisions,has no special provisions on private financing of small and micro enterprises,which are scattered in different legal norms and have a lower legislative level.Moreover,the legal definition between private financing and illegal financing is not clear and there is a lack of specialized supervision laws,and the supervision guarantee system is not perfect.Although private financing facilitates the financing of small and micro enterprises to some extent,it has a great negative impact to some extent because it is different from China's formal financial lending industry and is not subject to the supervision and regulation of the state and industry.It not only impacts on China's current financial and monetary policies,but also disrupts China's financial order.At the same time,it also produces a series of illegal and criminal behaviors,such as usury and violent debt collection,causing extremely bad social problems.The fourth part is the experience and inspiration of private financing of small and micro enterprises outside China.In this paper,the selection of Japan,Germany,and two typical continental law system countries and the United States the Anglo-American law system countries,through the legal system,supervision mode and specialized service organization and so on,the above several aspects of the regulation of various countries all have,which can be used for reference by analyzing the regulation of various countries,and extracted the advantages,combined with the actual situation in our country,put forward to solve legal problems of the small enterprises in our country folk financing proposal.The fifth part is the improvement of the private financing legal system of small and micro enterprises in China.This part proposes to improve the legal system of private financing for small and micro enterprises in China from three aspects.First,improve the legal system for private financing of small and micro enterprises in China,and formulate special legislation to improve existing legal norms:increase supporting implementation measures and increase mandatory regulations.The second is to encourage private financing.Due to the current lack of legislative norms for private financing in China,the definition of legal and illegal private financing is ambiguous,which makes it difficult to distinguish the boundaries between private financing and illegal financing,Therefore,we must distinguish between legal and illegal private financing.Further distinguishes the boundaries between private financing and illegal financing.At the same time,we must build a small micro enterprise credit information system.Establish information protection mechanisms and punishment mechanisms.Third,we must establish an effective supervision system for private financing of small and micro enterprises,improve supervision and enforcement,and clarify the main body of supervision.