ABSTRACT
In Chapter 2, capital procurement by family businesses was discussed. This chapter will take a closer look at issues involving the rural financial market, paying particular attention to microfinance, that is, loans of small amounts to low-income peasants. In particular, the position with microfinance will be examined using research conducted in Luquan and Shilin Counties, both part of Kunming City, Yunnan Province. As is well known, microfinance is used throughout many developing economies as a financing programme for peasants and small family businesses. In rural China, experiments with microfinance started in the 1990s in low-income areas.
