The main reasons why China supports microfinance companies are:
1. Agriculture and small enterprises are the main industries in China. In order to encourage self-employment, the state proposes micro-loans to boost the domestic economy, and provides small amounts of financial funds, which generally serve micro-enterprises, small enterprises, poor people or poor families, and the general amount is below100000. Although the loan amount of microfinance is lower than other loan methods, it is enough for small and medium-sized enterprises and individuals to start their own businesses as the original start-up capital or to make up for the short-term capital shortage of enterprises. Especially in the employment of college students and farmers' development of local economy, microfinance has played a very important role, and local government policies have also actively supported it, making microfinance favored by more people.
2. Micro-credit has increased social employment to a certain extent, and the rational use of micro-credit has also greatly improved the living standards of farmers, and has gradually become a way for local governments to encourage farmers or college students to start businesses. Microfinance plays an irreplaceable role.
Tips: The above information is for reference only.
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