Research On Credit Rating Index System For Small And Micro Businesses

Small and micro enterprises are an important component of China’s national economy, The problem of financing plaguing its operation and development. The business scope、small scale capital and uneven development of small and micro businesses caused financing difficulties. Through several years of development, commercial banks have formed a small micro-enterprise credit assessment methodologies, the rating system is not perfect and not uniform in the banking industry which increases the difficulty of the small business loans. Then, looking for an effective method and accurate evaluation is the important way of solving the financing difficulties of small and micro enterprises. By analyzing the characteristics of small and micro businesses and their financing problems, This paper constructed a credit rating index system of small micro-enterprise. On the basis of the safety and operational efficiency of bank funds, this paper can help commercial banks to establish a rational rating system to solve the financing difficulties of small and micro enterprises.This paper described the theory of corporate credit rating and small micro enterprise credit characteristics, at the same time, we reviewed the current research enterprise credit rating. Then from the current situation of small and medium micro enterprise credit rating index system, we analyzed the problems of the credit rating index system to build a credit rating index system of the small micro-enterprise. In this paper,we constructed the credit rating index system of the small micro-enterprise, by three ways:firstly, combined with the characteristics of small and micro enterprises, I developed a credit rating index system preliminary, and used the principal component analysis to identify the second index in the system by 105 small and micro enterprises. Secondly, we used the 0-1 standardization Law and entropy method to determine the weight of heavy credit rating index which reasonably reflect the role of the various indicators in the credit rating index system. Thirdly, we build a small micro-enterprise credit rating model by linear weighted method. At the last, on the basis of index system, the paper selected the 72 small and micro enterprises as the sample data and the 22 small and micro enterprises as the test data to analyze by the rating index system and its correct rate reached 81.8%which showed that the credit rating index system can measure the credit conditions of the corporate. The main contribution of this paper is that I reconstructed the credit rating index system suitable for small and micro enterprise on the basis of credit rating index system on small and micro enterprises for commercial bank in detail, which improve the ability of commercial banks to withstand the credit risk of small-micro enterprise financing problem.