Small Business Financing Is Difficult To Crack The Way Of The: Private Credit System Transformation

The financing dilemma of small enterprises is a worldwide problem. This thesis tries to explain this problem from realistic and theoretical aspects on the basis of the study and analysis on the financing status of small business. The ineffective capital market, the inadequate financing policy system, and the weaknesses of the small enterprises themselves are the realistic reasons for their financing difficulties. Their imperfect financing structure and the limited access to the capital market, the unsymmetric information status in the dominant capital market, and the prevailing credit rating system which is unsuitable to small companies all aggravate the financing problem.The financing dilemma of small enterprises leads to the prosperity of the civil financing. This thesis suggests that civil financing legalization is an effective way to solve the problem. Establishing the Civil Financing Law, setting up the small business law system, and building up the deposit insurance system and credit reference and reporting system can be good ways to legalize the civil financing organizations, so as to solve the financing problem of the small enterprises.