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Analysis of the Financing of micro and small enterprises in the context of the financial crisis

Author: ZhangLi From: www.yourpaper.net Posted: 2010-01-05 17:16:06 Read:
Paper Keywords: financial crisis;; financing

Abstract:
international financial crisis China's small and medium-sized enterprises, especially small enterprises has been a great shock. When criticism commercial bank assets to invest in highly concentrated in large enterprises and large projects, some small businesses benefit from the lack of the loan cheap marketing trends intensified the decline of bank pricing power, continue to think rationally about the basic problems of small business financing it seems particularly important .


To overcome the impact of the financial crisis, the state has adopted a series of economic stimulus measures, of which only the first quarter of 2009 new bank loans reached 4.6 trillion yuan, more than 20% throughout the year than in 2007. Analysis found that about one-third of the new loans are short-term commercial paper, most of the other long-term loans, the main flow of economic stimulus or government-led infrastructure projects and investment. In this process, large enterprises, especially state-owned enterprises to get the most of the new loans for SMEs to improve not very clear, micro and small enterprises is negligible.

, good small business financing as soon as possible out of the financial crisis on China's economy has a unique role

"Micro-enterprises" as distinct from small and medium-sized enterprises, in accordance with the concern of the China Banking Regulatory Commission, China's small businesses generally refers to the turnover of 3,000 million, the number of less than 100 enterprises. A total of about 60 million micro and small enterprises contribution to GDP rate of more than 60%, about 75% of the jobs and create about 50% of export earnings and financial and tax. Micro and small enterprises play an important role not only in the national economy, China's economy the most active, the most power of vitality, as soon as possible out of the financial crisis on China's economy has a unique role is to promote the full recovery of China's micro-economic and macro-economic trend further the basis of power.
The development of micro and small enterprises, we have overcome the financial crisis, to promote industrial structure upgrade the basis. Since the financial crisis, the unreasonable economic structure of China's economic performance is more prominent, and small businesses tend to be the pilot of structural adjustment. This is mainly due to its outstanding advantages, small enterprises are facing small-scale transaction number, transaction costs and other vulnerable to changes in the market risk of uncertainty, motivate them to have a greater system power of innovation and technological innovation. The same time, they are relatively low cost of innovation, has great maneuverability. Institutional innovation and technological innovation is the basis of economic restructuring. Micro and small enterprises by strengthening the degree of competition in the market and continuously improve the efficiency of market allocation of resources. Third, the development of a large number of micro and small enterprises to strengthen the social income equalization trend to promote the further optimization of the system of social distribution. Fourth, a large number of micro and small enterprises development to make up for the monotonous defective product range of large and medium-sized enterprises, the types of goods and richer features to meet the needs of different levels of people's consumption, and promote rationalization of consumption structure, economic structure also affects the adjusted.
At the same time, the development of micro and small enterprises, but also the development and stability of macro-economy, the basic force to promote China's rapid economic recovery. China as soon as possible out of the financial crisis, is inseparable from the development of micro and small enterprises. Secondly, micro and small enterprises by the dispersion of the total capital of the society as a whole to promote economic growth. Third, the development of micro and small enterprises, to overcome the financial crisis, restore the basic force of China's export growth. Latest micro and small enterprises is an important force to stabilize the price level, reduce the impact of the financial crisis.
A major obstacle to the development of micro and small enterprises financing difficulties. China should soon be out of the financial crisis, to maintain rapid and healthy economic growth, small businesses have better and faster development. Solve the problem of financing for micro and small enterprises, to further strengthen the strategic position and the unique advantages of the micro and small enterprises in China's economic map, and strengthen the government's responsibility to improve the policy environment for small business financing. On the other hand, we should also be based on the principle of sustainable commercial, discover the basic way to solve the problem, overcome technical bottlenecks bank achieve a win-win situation through product and service innovation, promoting economic development.

, bank credit is the basic way to solve the financing of small enterprises

CBRC Chairman Liu pointed out that the many financing instruments, the most important bank loans. This judgment, based on the basic characteristics of the micro and small enterprises, based on the status of the development of China's financial industry, but also the choice of the context of the financial crisis efficiently, solve the financing of micro and small enterprises pointed out the direction for the existing environment. The analysis is as follows:
Small enterprises are small, simple mechanism, operating flexibility, and improve the financial management system. From capital requirements, small businesses often demand long-term funding, but liquidity. Liquidity in the capital market financing, costs, income, rational choice to become a low-cost bank loans. Small businesses ability to resist risks, often require a reliable, continuous supply of funds, financial products of this feature is only obtained through bank loans to the private financing of unreliability, underground activities preferences, limited financial resources, far failed to meet the funding needs of micro and small enterprises. Features from micro and small enterprises, micro-enterprises in all aspects of information does not have the "openness", compared to the private nature of the bank's debt equity financing and require the disclosure of information just to meet the confidentiality requirements of small businesses of their own information. The capital is the blood bank credit for small businesses, is the mainstream choice.
From the long-term development perspective, small business loans and other loans as part of conventional commercial banks. It is neither charity, nor is it a short-term financial assistance, it is an earning assets of commercial banks. With respect to banks in lending to small businesses, a huge space to grow. The face of a double competitive pressures in the domestic and foreign financial institutions, commercial banks must innovate business ecosystem, re-market positioning, to seek new economic growth point, focus on small enterprises is an important means to gain competitive advantage. Through small business credit business innovation, optimize the loan structure to avoid the risk of loans are too concentrated to large customers at the same time, it also enabled the idle funds of the bank to be fully utilized to increase the income of the bank. Small business credit financial services is by far the most banks have not yet carried out, the full development of the small business credit market this huge potential market, can effectively expand the bank's market share and strengthen its market position, and strive to attract deposits through cross-selling, support of micro-enterprises, in order to establish long-term stable cooperation with banks.
Since the financial crisis, the government and society pay more attention to the problem of financing for micro and small enterprises, the introduction of many on the the MSE lending support and guide policy, but the flow of credit in the first quarter of this year clearly shows that the different choices of the bank in the process of actual credit. Thus, a careful analysis it is important for small business loans of banks, commercial revenue. International financial institutions engaged in micro-credit business practice shows that small business bank loans repayment rate of over 98% in some transition countries is as high as 99.8%, the loans overdue rate of 1% to 3%, loan write-off rate of less than 0.3%. Grameen Bank for tens of thousands of poor people to provide effective financial services, in the case of loans do not require guarantees, maintaining a repayment rate of 99%, and always profitable, its president, Professor Muhammad Yunus won the Connaught Nobel Peace Prize. These fully illustrated excellent for small business loans, bank credit is the existence of technological bottlenecks and other institutional mechanisms.

Third, the technical bottleneck of small business credit information asymmetry

In the small business credit, information asymmetry is the main problem. Compared with banks, small businesses share information superiority, holds more and more real internal information, and bank information channels of small businesses, in a weak focus on performance in not including micro-enterprises and business viability information symmetry. Information disadvantage of the bank, in order to eliminate information asymmetry of its adverse impact, can only be based on the understanding of the SME overall average information to set the loan conditions, rather than according to the individual to determine the degree of risk, thereby "reverse selection "and" moral hazard "exist.
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