Review Of Small And Micro Enterprises Financing Mode And Research

Since the 21 st century, economic diversification has intensified, emerging new industry, new product and new opportunities. Corresponding political, legal, economic, and service environment have been improved. Nowadays government has also introduced a number of preferential policies to support entrepreneurs. Thus the number of small and micro enterprises shows a rapid growth in many countries including China. The number of small and micro enterprises in the world accounts for about 95 percent to 99 percent, which in China is 96 percent. From the provisions of the Ministry of small and micro enterprises, small and micro enterprises exist in many industries, such as manufacturing, construction, retail trade and services. These small and micro enterprises increase tax revenue and GDP, and solve more than 75 percent of employment of China.However, there are a lot of problems in the developmental period of small and micro enterprises, such as policy oversight, lack of policy support, financing difficulties, short life cycle. Meanwhile, they are facing financing difficulties, lack of capital, high cost. In order to solve these problems, governments introduced a number of policies, and experts also put forward theories, some of which may be effective policies and theories. As for China’s own situation, it is urgent to find a suitable financing method for Chinese small and micro enterprises.The first part of this paper is the literature review which could help to find the urgent need of the suitable financing method for Chinese small and micro enterprises. Then, the problems and existing financing methods have been analyzed. Based on supply chain finance and P2 B, SCM-P2 B financing method has been explored, with four phases: electricity supplier industry pilot phase, other industries promotion phase, introducing bank competition stage, credit system stage. This method could solve many problems of small and micro enterprises and could ultimately establish a relatively complete credit system of small and micro enterprises. Due to limited space, this paper focuses on the design of the implementation steps of financing, without specific figures such as investment interest and the minimum investment limit.