March 25, 2015
By Bob Coleman
Editor, Main Street Wednesday
It has been a while since I’ve done an international Main Street story, but it’s always informative to understand how other countries view small business’ access to capital.
Take China for example.
The government has lowered its economic growth target this year to 7 percent. That will be the lowest growth rate in 20 years.
China clearly understands the importance of small business to a nation’s economy as reports surface that small businesses that aren’t backed by the state are struggling.
Writes the Herald Sun, ‘The China Banking Regulatory Commission said in a notice that growth in bank loans to small businesses this year should be higher than in the previous year, and banks should issue credit to more small lenders.
‘The regulator also called on Chinese lenders to be more tolerant of bad loans made to small businesses and asked them not to cut off credit to firms that were still competitive but facing temporary difficulties.’
‘The slower growth level will mean more financial pressure for the country’s small firms, analysts said, noting that the state-dominated banking sector tends to favour bigger government-run companies.’