What Is the Small Firm Effect?

Small business finance refers to financial institutions that provide deposits, loans, payment settlement, insurance, guarantees, wealth management, and financial consulting for various small enterprises (including individual industrial and commercial businesses, microenterprises, and small businesses) that are above the boundaries of commercial financial services. A package of financial services, such as asset securitization, is an economic activity that promotes its sustainable and healthy development while also obtaining reasonable profits.

Small Business Finance

Right!

Small business finance means

The commercial small business finance is mainly composed of

The concept of commercial small business finance can be defined from the following three dimensions. ^[2]

On June 20, 2018, with the consent of the State Council, the People's Bank of China, the Banking and Insurance Regulatory Commission, the Securities and Futures Commission, the Development and Reform Commission, and the Ministry of Finance jointly issued the Opinions on Further Deepening Financial Services for Small and Micro Enterprises (Yinfa [2018] No. 162). ^[3]