A Study on Improving the Financing Environment of Small and Micro Enterprises – Based on Taizhou Model

Abstract

China’s small and micro enterprises have always had the typical characteristics of “five, six, seven, eight, nine,” which are important supports to expand employment and improve people’s livelihood. However, the current proportion of these enterprises in obtaining bank loans does not commensurate with the proportion of small, medium, and micro enterprises in the total economic aggregate. The financing dilemma of small and micro enterprises still exists. In consideration of the financing status of small and micro enterprises, this study analyzes the constraints of small and micro enterprises in financing, such as the difficulty in mortgage, difficulty in obtaining loans, and difficulty in guaranteeing. This study sorts out Taizhou’s practical experience and links its operation mechanism of “two platforms, one fund, and one index.” Finally, by learning from its successful experience, how to utilize the environment and the trend of big data will be further discussed, so as to form a scalable and sustainable financing method and path. This will provide a reference for improving the financing environment of small and micro enterprises.