A Comparative Study Of Sino-italian Small & Micro Enterprises Funding Guarantee Mechanism

Small & Micro enterprises(SMEs)are important sectors of economic growth in various countries.However,they are always difficult to obtain formal financial services.Because of the opaque information and lack of abundant capital,SMEs are considered to be too risky by financial intermediaries.Solving the problem of micro-credit guarantees has plagued many central or local governments.Italy is known as the "small and micro-enterprise kingdom".Due to the development of SMEs,Italy was quickly rank among the developed countries after World War II.Italy's SMEs guarantee system is well-structured and has a long historical tradition of the development "confidi".The mechanism is recognized throughout the European Union as a relatively well-developed financing guarantee and financing constraint mechanism of SMEs.Therefore,Italy's SME financing guarantee mechanism is a typical SME financing guarantee mechanism in EU countries.China is at a stage of high speed development now.Jiangsu,Zhejiang,Guangdong and other provinces are in the top economic growth list which gathered a large number of SMEs.However,as China is still in the initial stage of development,the financing of SMEs,especially the financing guarantee mechanism,needs to be improved.China's SMEs guarantee mechanism is mainly based on policy financing guarantee.The resources of the insurance institutions are unevenly distributed,the supervision is not strict and has higher risks.The degree of guarantee mechanism development is low,which needs to be improved.The Italian mutual guarantee mechanism is mainly based on mutual guarantee,and already made some outstanding contributions to the development of SMEs in the availability of financing for SMEs and the controllability of banking system risks.To further stimulate small Enterprise vitality,we compared the financing mechanism of Sino-Italian small and micro enterprises.It sums up the differences and similarities between the legal and regulatory mechanisms,the structure,the scale and the degree of development of the financing guarantees of the two countries,and also the key role of the guarantee mechanism in the growth of SMEs.There are some suggestions,first of all,vigorously develop mutual guarantee mechanism,and use China's gatherd SMEs resources to save government expenditures.Secondly,the capital in the Chinese financial banking system should be decentralized and the risk control technology should be improved.Thirdly,the government should improve the corresponding legal supervision system to make the laws of the guarantee industry more detailed.Finally,SMEs should strengthen their internal management,and transparent and open management can fundamentally solve their own financing problems.