Internet Finance,Regional Differences And Financing Availability

According to the released data of China's fourth national economic census in2019,there are in total over 18 million micro,small and medium-sized enterprises,of which more than 17 million are micro and small enterprises,and these two values roughly occupy 99% and 98% of the total number of Chinese enterprises respectively.Micro and small enterprises have long been a vital force to boost the economy,however,there are still various problems in the development of these enterprises,such as inconsistent financial management standard,low anti-risk ability and imperfect management mechanism,and all of which are able to make it difficult to meet their financing needs.As a result,the difficulty and high cost in financing have become the common obstacles for micro and small enterprises to making rapid progress.There is no doubt that solving the financing problems is crucial to small and micro enterprises.With the continuous innovation of Internet technology,China's Internet finance has grown speedily,which spawned a variety of financial services,such as crowdfunding,P2 P Internet lending,big data finance and so forth,giving micro and small enterprises more choices and opportunities in financing.The financing needs of micro and small enterprises can be better met with the assistance of Internet finance for its characteristics of low threshold and high efficiency.Therefore,the study of impacts of Internet finance on the financing of small and micro enterprises is of great significance and research value alleviate their financing constraints.Based on the long tail theory,financing demand theory,as well as transaction cost and financial exclusion theory,this paper analyzes the capability of Internet finance in accelerating the financing of micro and small enterprises.In this paper,the relationship between Internet finance and the financing availability of micro and small enterprises is tested by Probit regression model by analyzing the statistics of2,919 micro and small enterprises obtained from questionnaires.The results show that Internet finance is helpful to raise the financing availability of small and micro enterprises,but it will also cause an increase in financing cost.In other words,Internet finance can alleviate the financing difficulties of small and micro enterprises with a higher financing cost.A further analysis is taken to explore the regional differences between Internet finance and the financing availability of small and microenterprises,whose result indicates that the preferential policy and legal environment as well as the favorable financial environment are all effective factors to enhance the financing availability.In the final,countermeasures and suggestions are proposed in accordance with the results of qualitative and quantitative analysis to alleviate the financing constraints of small and micro enterprises with the aid of Internet finance.