A Research On Ningxi Small And Micro Businesses' Credit Scoring Problems

The development of small and micro businesses relies on banks heavily.However,since the credit levels of small and micro businesses are low,the separation between enterprise financial conditions from enterprise operators' financial conditions is not obvious,there are no standard financial statements in enterprises or credibility of the statements are low,and there is no specialized small and micro businesses credit assessment systems in banks,it leads to problems such as "difficulty in assessing credit levels","difficulty in controlling credit risks" and so on when facing loans of small and micro businesses.Ningxia is a gathering region for minorities,since the Hui nationalities follow the historical tradition and living habit of engaging in business,the proportion of small and micro businesses is large,and small and micro businesses registering in private economy grades occupy the majority.Therefore,financing credit problems in Ningxia small and micro businesses is prominent.At present,"Public Innovation,All Start Business" has become a new tendency for social development.Under such trend,the number of small and micro businesses is also increasing.Therefore,to study how banks can assess the credit of small and micro businesses more efficiently and accurately so as to provide forceful financial support for their development has important practical and theoretical significance.Aimed at the unsound financial situation in most of the small and micro businesses in Ningxia,this paper first tries to add the information of the operators into the screening of significance variables;then,relying on the empirical data provided by some banks in Ningxia,it uses logistic regression method and finds empirical data that can influence small businesses' default rate most so as to construct scoring model of Ningxia small and micro businesses and transforms the assessment result of the model to default rate into credit scoring card;finally,in order to guarantee that the result can provide basis for the credit decisions of banks,this paper conducts validity check on credit scoring card.Through the above researches,this paper comes to the following conclusions:firstly,it proves that besides enterprises' financial information,enterprise operators'information added in the model can assess the credit condition of small and micro businesses efficiently.Secondly,it proves that Ningxia small and micro businesses credit scoring model constructed in this paper can be used to measure default risk so as to provide basis for credit decisions of banks.Lastly,it proves that credit scoring card designed in this paper is convenient for lending officers to measure the default risks of small and micro businesses so that banks can be more efficient and can assess the credit of small and micro businesses in Ningxia more accurately.