Research on Difficulties in Financing of China’s Small and Micro Enterprise
|School||Xinyang Normal University|
|Keywords||Small and micro enterprise financial difficulties financing predicament|
China’s Small and micro enterprise has numerous, widely distributed, species miscellaneous features and so on. It is the basic platform for the life of the masses, is the market body’s basic organization and the basic force of an active market, is a grassroots network of economic and social, is an integral part of the national economy. Looking at domestic and foreign, small and micro enterprises are an important force in supporting the development of the national economy, it has played a significant role in addressing employment, economic growth, social stability. At present, China has about50million small and micro enterprises. They provide a large number of jobs and nearly two-thirds of the income tax, the contribution to the national economy is growing. However, for a long time, small and micro enterprises have many problems. Under the influence of fluctuations in the economic cycle, the living environment of small and micro enterprises is deteriorating. Difficulties in financing of Small and micro enterprise has become a bottleneck restricting the development. Resolve the small and micro enterprises financing difficulties is urgent.Currently, China’s small and micro enterprises financing exist many problems. Specifically, small and micro enterprises financing difficulties reflected in the following aspects:Firstly, financing demand of small and micro enterprises is great and financing gap is huge. Banks to lend and Enterprises were granted loans dual hard. Secondly, the channels of financing are rare, available financing channels have many problems. Thirdly, financing structure is unreasonable:the small and micro enterprises rely on endogenous financing, however, it lack of Internal financing capacity. Exogenous financing depends heavily on indirect financing, direct financing has small-scale and informal financial financing’s r proportion is large. Fourthly, the cost of financing is expensive, apart from the high rate of bank loans, the high cost of the middle, high private loan interest rate is also pushing up the small and micro businesses financing cost. Fifthly, Guarantee system is not sound that effects of small and micro businesses financing, guarantees to increase small and micro businesses’financing difficulty. Lastly, financing policy environment is not perfect, the financing support policies are various, but the effect is little. Based on the analysis of the present situation of small and micro enterprises, probe into the factors causing small micro enterprise financing difficult, it is not difficult to find that factors causing the financing difficulties of small and micro businesses include two aspects of inside and outside. Among them, the main cause is internal defects, including the financial system is not perfect, the lack of high-quality collateral, asymmetric information and management idea backwardness and so on. External factors include the defects in financial institutions, capital market, security system and the lack of government support.In view of the reality of our country small and micro businesses lack of development and long-term trapped in financing, Solve the financing difficulties of small and micro enterprises in China can be broadly proceed from the following two aspects through learn the successful experience of financing to support small and micro enterprises that from the abroad and outside borders:on the one hand, small and micro enterprises should establish a standardized financial system, enhance their own financial cultivation, build credit, use of modern enterprise management system, to improve their "internal force". On the other hand, constantly optimize the financing environment of small and micro enterprises in the financial, policy, legal what need to constantly improve our country’s financial system, capital markets, financing guarantees market, and government support system. Through internal and external efforts, financing difficulties of small and micro enterprises can be solved radically.