Folk Micro-finance Company Development Research

It is to promote economic development in rural areas and small andmedium-sized enterprises development by the establishment of the folkmicro-finance company. Micro-finance provides financial services for a lowincome person, it is the development result of financial innovation.Firstly, based on the summarized the development status of small loancompanies and the research of seven small loan companies in Wuhu, this paperexpounds the development situation of folk micro-finance companies about Chinaand Wuhu, and by analyzing the data, combined with the current situation of smallloan companies in Wuhu, we analysis business classification and loan supplysituation on the folk micro-finance company. And then, there are advantages todevelop small loan companies in Wuhu because of the good financial environmentand financial ecology and big market. Secondly, the folk micro-finance companybe in experimental stage is a new business model of micro-finance, so it is not onlythe existence of defects are also at risk. Through the analysis of the survey data,this paper discussed in detail risk origin and development process of the small loancompany in the plight. Thirdly, as the important role of the folk micro-financecompany, through the combination of case analysis of Wuhu small loan companies,the paper puts forward some countermeasures to prevent risks and improve theplight of. The folk micro-finance company want to further development, in additionto the government’s macroeconomic policies to support and standardize, but alsofor the reform of operation mechanism and management mode from the inside, soas to enhance the risk resistance ability of the enterprise, improve the internalstructure. Finally, although the development of micro-credit company is slow, itsprospects is no doubt, the folk micro-finance company’s development will injectnew vitality into our country small and medium-sized enterprise credit and ruralfinancial market.