Construction Of Multi-Level System Of Financial Support Of Small And Micro Enterprises

Small and micro businesses are gaining importance in the development of national economy. On the one hand, it shows huge advantages in the business quantities, employment opportunities as well as tax revenue, but on the other hand, it is regarded as a weak link in domestic economy, which arise a national focus on their sustainable development. This thesis starts with the problems in the development of small and micro businesses, providing definitions and tracing theoretical and practical developments in financing practices of small and micro businesses. By gathering statistics and analyzing the modern situation of these businesses’development in Zhejiang Province as in the whole country, this thesis has reached the core that the fundamental problem hindering these businesses" development lies in financing practice.A questionnaire has been designed to help to get a deeper understanding of the current situation. By analyzing those statistics from the research, this thesis represents the difficulties in financing with few accesses and huge needs. In the20127th Zhejiang Finance&Money Exposition, field researches has been done on the financial support angle of financial institutions to small and micro businesses. On the contrary, many non-bank financial institutions are providing financing services to small and micro businesses while those businesses are reluctant in accepting this new form of financing. Under such contradictory circumstances, this thesis considers that the solution should cover certain levels as from micro meso macro angles but not restricted to just one level. From macro angle, the dual policy support from the central government and the local government is needed. From middle angle, the dual construction support from the financial market and the credit system is needed. From micro angle, the dual capital support from the formal finance and the informal finance is needed. This thesis has covered the discussion of solving financing problems of small and micro businesses from these three different angles.