Research on the Effectiveness of P2P Lending in Smoothing Financing Channels of Small and Micro Enterprises

Abstract

In China, the rapid development of small and micro enterprises (SMEs) played an important role in promoting the solid growth of macro economy, solving the employment problems, maintaining social stability. However, nearly 90 percent of the demands cannot be met effectively, which restricted the sustainable development of SMEs. The P2P lending, which is more convenient, lower transaction costs and higher coverage than traditional financing channels high coverage, provides a new financing method for SMEs. While, there are some practical problems in the current development process of P2P lending, such as high transaction costs, incomplete credit rating system, imperfect law system, and lack of supervision. This paper puts forward corresponding countermeasures and suggestions, which aims to promote the sound development of the P2P lending in Chinese SMEs.