Analysis of the Status and Role of Financing Guarantees in Solving the Financing Difficulties of Small and Micro Enterprises in the Financial System

Abstract

Small and micro enterprises are the fundamental support of national economic operation, yet the structural financing difficulty has long restricted their sustainable development. This paper sorts out mainstream corporate financing channels including equity financing, bond issuance, commercial bills, financial leasing and bank loans, and analyzes the applicable thresholds and practical obstacles of each financing mode for small and micro entities. Based on the 2025 industry operation data of China’s financing guarantee sector, this paper systematically expounds the core functions of financing guarantee institutions as credit enhancement intermediaries: building a multi-level national guarantee system with quasi-public welfare positioning, exerting fiscal leverage to amplify bank credit supply, lowering comprehensive financing costs for small and micro enterprises, and innovating customized guarantee products targeting asset-light industries such as culture, tourism, science and agriculture. The study verifies that financing guarantee is the key link to unblock inclusive finance, serving as a stabilizer for employment and a booster for private investment under macroeconomic regulation. Finally, the paper proposes future development directions for the financing guarantee industry under the 15th Five-Year Plan, including digital risk control transformation and improved risk-sharing mechanisms, to further ease the financing constraints of small and micro enterprises and bolster high-quality economic development.