Urumchi Small And Micro Enterprises Informal Financial Channels Financing Research Report

Since 1979,China's financial authorities have suppressed the financing of the informal financial channels,and the change in the open attitude is the affirmation of the importance of the financing of the informal financial channels.Informal financial channel financing will inevitably involve geo and kinship.It is beneficial to avoid the problem of asymmetric information and adverse selection,and to choose the guarantee mode flexibly.The embeddedness of culture reduces the cost of supervision and saves the transaction cost.Urumqi small and micro enterprises account for more than 80% of the total number of enterprises.These enterprises have made outstanding contributions to Urumqi's economy,employment,tax,social stability and so on.In reality,the formal financial channels are lacking in financing support for small and micro enterprises.Small and micro enterprises often choose to finance the informal financial channels with low loan threshold and flexible use.However,the informal financial channels,while supporting small and micro enterprises in Urumqi,affect the sustainable development of the economy because of the mixed influence of the traditional ideas,legal systems and the "underground activities" of informal financial channels.Therefore,this paper uses questionnaires and field visits to understand the real informal financial channel financing of small and micro enterprises in Urumqi,and analyzes them on this basis.It is hoped that the financing environment of informal financial channels can be better finished on the basis of the beneficial supplement channels for the financing of regular financial channels.In order to objectively and truly investigate the present situation of Urumqi small and micro enterprises' financing in the informal financial channels and analyze the existing problems,the paper mainly adopts the methods of literature research,questionnaire investigation and quantitative research to demonstrate and analyze in the process of investigation and research.Through the analysis of the results of the investigation,it is found that small and micro enterprises have the following problems when financing the informal financial channels: high financing cost,limited financing time limit,lack of regulation,large risk,the financing channels to be widened,the traditional channel is still the first choice,and the service support of Internet finance needs to be improved.Through the analysis and summary of the internal and external causes of the problems,and on the basis of the problems and reasons,suggestions are put forward to strengthen the self construction of small and micro enterprises and strengthen the financing norms of the informal financial channels.