Analysis of Credit Financing Gap of Small and Micro Enterprises in Cities

Small and micro enterprises play an indispensable role in the economic construction of China, They are the important part of the development of the national economy, which play a vital role in expanding employment, increasing the growth, promoting innovation and creating taxes. Therefore, the identification and demonstration of the credit demand structure of small and micro enterprises is the inherent requirement to broadening the financing channels and improving the financial supply of small and micro enterprises. This article analyzes the reasons for the formation of small and micro enterprises credit financing gap from three aspects: the micro enterprise itself, the financial institution, the factor of government. And a series of countermeasures for solving the financing gap of small and micro enterprises are given, such as improving the financial system of small and micro enterprises, establishing small and micro enterprises clusters, establishing the efficient security system and innovating the guarantee mechanism. Thus it can be concluded that the simple expansion and improvement of the credit supply of the existing formal financial institutions can not solve the development dilemma of small and micro enterprises completely. We need to combine credit supply and demand, so that the problem of small and micro enterprises credit financing gap can be completely resolved.