Risk Management Research Of Small And Micro Enterprises In Agricultural Bank Of China Puyang Branch

With the rapid development of the economy in Puyang, the number of small and micro enterprises have accounted for the most of the enterprises in Puyang.According to the record, small and micro enterprises enterprise in Puyang have account for 98.2% of all enterprises. at the same time, small and micro enterprises in Puyang provides more than 75% of urban jobs, the creation of wealth accounted for63% of the gross domestic product in the city, small and micro enterprises tax accounted for 57% of the total tax revenue, small and micro enterprises have greatly promotes the Puyang’s Economic Development and havebeen an important part of Puyang’s Economic. It can not only satisfy people’s demand for different levels,provide jobs, expanding employment, but also promotethe social stability and the construction of a harmonious society. At the same time, small and micro enterprises is also an important source of the innovation of science and technology, it promote the progress of science and technology in the society.Although small and micro enterprise in Puyang developed very quickly, but these enterprises still face many difficulties in production and management process. On the whole, small and micro enterprises in Puyang are basically in the bottom of the value chain and industry chain, because the enterprises scale are small and the output value are relatively low. Most of the small and micro enterprises risk resistance ability is weaker, in the event of the domestic and external macroeconomic fluctuations, small and micro enterprises will beaffected in the first time. At the same time, small micro enterprises are generally facing the problem of high taxes, high cost, financing difficulties andlack of labors.in all of the problems, financing problem is the most serious.For Small and micro businesses financing problems, the reason of these problem relate both with micro enterprisesand related industries.Because of the small scale,small capital, and tremendous risk, it was very difficult to survive for the micro enterprises.Most of small and micro enterprises cannot direct financing from the gem and SME board market. Small and micro enterprises have low anti risk ability, and their market competition ability is low. Most of the micro enterprises take family mode of operation, they have not establish a perfect enterprise management system.Their organizational structure is simple and extensive, at the same time their management are very loose, and their property ownership is not clear. For the micro enterprises, there exist the phenomenon of lack integrity, some micro enterprises even defraud the bank loan and take the illegal interests. Because lack of effective collateral guarantee and so on, result in the situation of small and micro enterprises difficult to financing.From the point of the bank, although all commercial banks to increase lending to small and micro enterprises, but there are many objective factors restricts the issuance of bank loans to small and micro enterprises. There are many reasons for the difficulty of micro enterprise financing problems, due to the following aspects:(1) commercial banks’ credit rating system is not perfect. Existing bank credit rating systems are most design for larger companies, but micro enterprise credit rating system is relatively absent.Due to the difference of micro enterprises and large enterprise, rating index applied to large enterprises pay more attention to enterprise’s scale, but ignore the growth of the enterprise, these index system not applicable for small and micro enterprises.(2) Information asymmetry problem. Due to the information loss of micro enterprises, commercial banks difficult to fully grasp the operating conditions of these enterprises, small and micro enterprises may also conceal their own negative information in order to obtain bank loans.(3) The cost of management of micro enterprises is much higher than large enterprises for commercial banks.After the reform of the shareholding system, all commercial banks aim to profit more, banks tendency to choose more stable of loans to large enterprises, rather than small and micro enterprises with small loans. All of above reasons contribute to the small and micro enterprise financing difficult problem.Based on the above,the author put forward corresponding suggestions to solve these problems, the author put forward corresponding countermeasures separately from the perspective of the micro enterprises and bank in this paper. At the same time,from the point of the government, they should set up credit rating and credit guarantee system to provide good financing environment for small and micro enterprises. The government should also improve mutual cooperation between enterprises, banks and the government, and perfect the social service system, provide the low cost and high efficiency financing environment for small and micro enterprises, so as to solve the financing problems of small and micro enterprises.This Paper is divided into four parts:Part I, First,This paper introduce the background and significance of the research. This paper summarizes the research framework, and introduces the purpose of the research to illustrate the challenge faced in this paper.Part II Introduce the definition of the small and micro enterprises in puyang,and analysis of the current risk of small and micro enterprises, and small micro-enterprise the historical credit process and risk analysis.Part III Analysis of the reasons for the small enterprise credit risk from the point of view of micro enterprises and the bank’s, Analysis the risk reason and prevention of the micro enterprises.Part IV According to the Small and micro enterprises pre loan investigation,loan review, loan management in Puyang branch of Agricultural Bank of China,illustratethe financing difficult situation of the micro enterprises,and discuss how to solve the problem of financing for micro enterprises.