Influence of Microcredit on Individual Entrepreneurship

Abstract

In recent years, with the deepening of inclusive finance's strategy, China's microfinance service system and supporting policies have made remarkable progress-from product supply expansion, interest rate marketization reform to regulatory details optimization, and gradually build a financial support network covering urban and rural areas and connecting small and micro entities. This study explores the impact of microcredit on individual entrepreneurship and Small and Micro Enterprises (SMEs) and promotes some suggestions based on the existing shortages of the system. By concluding past essays, this study finds out positive influences of microcredit on the inception and subsequent development of individual entrepreneurship. However, microcredit products’ differentiation, completion and risk control of microcredit-providing institutions still need to be improved in order to empower more members of disadvantaged groups to start businesses. The finding contributes to the support of universal effect of the microcredit and benefits the future development and completion of microcredit service system. It also underscores the importance of microcredit on SMEs and individual entrepreneurship.