On The Legal Issues Of Government Support To Small And Micro-enterprise Financing

Small and micro businesses refer to diversified operation units or organizations including small-sized privately owned enterprises,individual partnership business and individually-owned business.Their total assets are relatively small and financing demand is limited;besides,their operation revenue is lower and there are only a limited number of practitioners.Currently,in the financing of Chinese micro small and micro businesses,there are major problems as follows: it is difficult to get commercial bank loans,direct financing is faced with practical obstacles,and there is a large risk for private lending.Under such background,in order to promote the development of small and micro businesses,it is a necessary choice for the government to provide support for financing of small and micro businesses.In order to guarantee the sustainable development of the small and micro businesses,so far,Chinese central government has established lots of financial special fund,which is used to support and promote the development small and micro enterprises specifically by awarding the investment subsidy,subsidized loans,direct subsidy,and fund injection.However,in terms of the government support for Chinese small and micro business financing,there still exist a series of problems such as a small amount of financial fund from the government,disordered management of financial support,complex administrative procedures and methods of getting government support,the government’s limited ways of providing financial support.The overseas legal practice on the government support for small and micro businesses shows that in order to provide financial support for small and micro businesses,it is vital to establish a perfect system of laws and regulations,effective guarantee mechanism and special policy banks to provide loans.Combined with the defects in the government support for financing of small and micro enterprises in China,in reference to overseas experience,the legislation perfection for the government support in financing of Chinese small and micro businesses has to be done from the following aspects: define the legal status of small and micro businesses,claim the government’s special support for financing of small and micro businesses and expand the government’s ways to support the financing of small and micro businesses;at the same time,perfect the government guarantee system for financial of small and micro enterprises,including the system of government guarantee institutions for financing of small and micro businesses and system of providing fund for small and micro businesses through policy bank behaviors;besides,improve the supporting system of government support for financing of small and micro businesses,including increasing financial investment and enhancing fund supervision,optimizing credit guarantee tax policy and implementing preferential arrangement of small and micro enterprise in government procurement etc.