Research On The Equity-Based Crowdfunding Financing Of The Small And Micro Businesses Under The Background Of Internet Finance

Lately,with the processing of our marketization,more and more bills have been introduced to support the development of small and micro enterprises.They are playing an important role in our economy now.Especially under the pressure of economy downturns nowadays,small and micro businesses have become the main channel of employment,which can help solve the re-employment problems of many unemployees.What's more? Small and micro businesses contributed a great deal to our social stability and economic development.However,the growing micro and small enterprises is not only shown in quantity,but also in their financing scale.According to the relevant data,at the end of 2017,the financing size of our micro and small businesses have already reached 27 trillion yuan.So our micro and small enterprises have become an important part in China's economy.But,they are facing financing difficulties which have become one of the focus around our society.Corresponding to such large amount of financing demanding size is the situation that the the supply is far from enough.Although many bills have been published by our government sectors and banks successively,on one hand,the growth of micro and small businesses inevitably brought fund shortage,on the other hand,under the traditional credit mode,banks are inclined to large and medium-sized enterprises considering borrowing costs,profits and risk.Consequently,under such circumstances,solving the financing problems of small and micro businesses is of great important,considerting their irreplacable role in promoting employment and our economy.Nowadays,the internet technical is innovating with the scientific advancement.Our economy relying on the reform of internet is also processing along.The word “Internet Finance” was prescribed in the annual government work for the first time in 2014.Till March of 2018,the annual government work refered to “Internet plus” for 7 times at the opening meeting of the first plenary session of the 13 th National People's Congress.Our government have always been putting a high value on the development of ineternet finance.Internet finance helps to reduce the transaction cost and to improve financing efficiency though widely applying mobile payment,big data,cloud computing and other modern information technology.It provides a new way to solve the financing problems of small and micro businesses.Equity crowdfunding,one of crowdfunding patterns,which is also a part of internet finance,is a bran-new financing pattern.Its low barriers to entry,low financing cost and high efficiency have made it all the more attractive among most enterprises especially among small and micro enterprises as it firstly appeared.In view of equity crowdfunding's great function in assisting small and micro businesses' financing,it should be emphasized by the public.This thesis setting in the internet finance,with the start point of small and micro businesses' financing difficulties,expounds the state of the small and micro businesses,and analysed the reasons from the aspects of small and micro businesses,banks and government.This paper chooses the Chinese world's equity crowdfunding financing as a case,concretely analyzes how the Chinese world use the equity crowdfunfing pattern to finance,and how to exit safely.Then,the thesis comes to a conclusion that the equity model is helpful to small and micro businesses' financing,though the comparison of the financial index and non-financial indicators before and after the Chinese world using this financing model.However,there also exists some problems.As the internet finance is still in its initial stage in our country,a large part of Chinese traditional finance laws and regulations cannot apply to it completely.Moreover,the internet finance,based on the cloud computing,big data and other thechinics,is not that safe.So,at the end of this paper,some risks in the use of internet finance are also introduced,which could serve as reference and guidance for most small and micro enterprises' financing in China.As a result,the equity crowdfunding can better assist the development of small and micro businesses in China,and promote the sustainable development of our economy.