Small Business Financing by Nongovernment Chamber of Commerce

Investing and financing is very hard for small business companies around world and even more in China. For many years, more and more practices and theorists are endeavoring to figure out this dilemma. In this paper we try to find a new way based on investigating and researching to promote the cooperation between bank and small business companies through nongovernmental chamber of commerce. We took nearly one year to visit about 500 firms whom belong to Tianjin Wenzhou Chamber of Commerce (TWCC) that located in Tianjin. All data was put into database and analysis. We find that nongovernmental chamber of commerce can be a trust middleman between bank and small company then to decrease the loan risk for bank and help small companies to improve their financing and investing. This is one way for small business financing that suit to present situation in China and can be benefit to every part who involved in. Also it may enlarge the bottleneck of small business financing.