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Financing of Micro and Small Enterprises in China: An Exploratory Study


  • JEL classification codes: D24, G21, G23, G28, L26, L31.


The financing predicaments of micro and small enterprises (MSEs) — such as MSE owners requiring lower credit costs, longer loan repayment periods, monthly loan repayments, and more diverse security methods to reduce access barriers — suggest a need for financial inclusion of the unbanked and a future for the microfinance industry in China.