Study On The Current Situation And Countermeasures To Relieve The Financing Difficulties Of Small And Micro Enterprises In Jiang Xi Province

Small and micro enterprises economy play a pivotal role in the development of the national economic,and they are also the backbone of social stability and promotion of China’s socialist economy development.Having multiple sources of enterprise capital turnover is the key factor for the development and growth of small and micro enterprises.However,financing difficulties and high financing cost have always been the universal problems faced by small and micro enterprises in China,which are more significant in less developed regions including Jiangxi Province.Although Jiangxi government has introduced a variety of inclusive policies and measures to support small and micro enterprises in the context of the national inclusive financial reform,the relevant financial data statements that the financing needs of small and micro enterprises in Jiangxi have not been fully met.On the basis of the relevant financial credit data,we found that the existing financing support policies for small and micro enterprises in Jiangxi overly dependent on the credit inputs from various financial institutions on the one hand,and on the other hand,multiple factors,such as less policies on support the direct financing of small and micro enterprises,few credit guarantee institutions with government background,and imperfect credit system construction,affected the satisfaction of the small and micro enterprises’ financing demand.Given the large number of small and micro enterprises and large amount of financing demand in Jiangxi Province,the government alone rely on financial institutions unlikely resolve the financing difficulties faced by small and micro enterprises.The provincial government and local government departments at all levels should do a good job in financial services.Under the current international and domestic new economic situation,the provincial government and local governments at all levels must attach great importance to introduce new management methods and issue new policies to resolve the financing difficulties faced by small and micro enterprises.Taking Jiangxi Province as an example,this thesis discusses how the government can optimize the existing financing support policies for small and micro enterprises to alleviate the financing difficulties and expensive financing in the context of the downward global economic environment.We firstly investigated the financing situation demand,and difficulties of small and micro enterprises.By reviewing documents on changes in the credit balance,credit growth,and in credit share structures,we discussed the actual situation of credit allocation by financial institutions and the difficulties encountered in financing small and micro enterprises.We then analyzed the policies on alleviating the financing difficulties confronted by small and micro enterprises and investigated the factors,followed by the analysis of the shortcomings of the financing policies.Those shortcomings cover insufficient motivation of commercial banks in credit allocation,few policies to support the direct listing financing,unsound financial credit ecological environment led by the government,and imperfect policy-based guarantee institutions.According to above analysis,this thesis puts forward the policy recommendations for the provincial government and local governments at all levels to improve their capacity to resolve the enterprises’ financing difficulties.It contains that improving the enthusiasm of commercial banks in credit allocation,supporting the direct listing of small and micro enterprises in financing,strengthening the construction of social credit environment,and improving the construction of financing guarantee system.