Government financing guarantees have played a positive role in helping enterprises alleviate difficulties and stabilize employment. There is an urgent need to enhance its support for employment and entrepreneurship, promote its expansion and increase, reduce fees and benefits, and enhance efficiency. Employment is the foundation of people's livelihood, and entrepreneurship is the source of employment. In order to further leverage the role of the government financing guarantee system in increasing credibility and risk sharing, and guide more financial resources to accurately support employment and entrepreneurship, the Ministry of Finance and other departments recently jointly issued the "Guiding Opinions on Further Leveraging the Role of the Government Financing Guarantee System to Strengthen Support for Employment and Entrepreneurship". This document will help promote the overall employment work of government financing guarantee services, further alleviate the financing difficulties of small and micro enterprises, promote their stable and expanded employment, and activate entrepreneurship to drive employment. Small and micro enterprises are the main force in absorbing and driving employment, but the long-standing problems of difficult and expensive financing have hindered their development and employment absorption capacity. It cannot be denied that small and micro enterprises often have disadvantages such as limited effective collateral, weak creditworthiness, and low returns. Relying solely on market mechanisms is difficult to solve the pain points of financial institutions' "reluctance to lend". Since 2015, the central government has vigorously promoted the construction of a government financing guarantee system, bridging the "last mile" of financial services and achieving full coverage of county-level businesses nationwide, with rapid growth in scale. Government financing guarantees adhere to a quasi public positioning and have the functions of "credit enhancement, risk sharing, and intermediary", effectively filling the gaps in the market, especially providing strong support for small and micro enterprises and the financing needs of agriculture, rural areas, and farmers. Among them, the National Financing Guarantee Fund, as the leading government financing guarantee system, has accumulated a cooperative business scale of over 5.6 trillion yuan since its opening in September 2018, and the average guarantee fee rate of cooperative institutions has dropped below 1%. In addition, Rongdan Fund has provided services to over 5.7 million small and micro enterprises and other business entities, stabilizing employment for approximately 59 million people. Overall, government financing guarantees have played a positive role in helping enterprises alleviate difficulties and stabilize employment, and have also become an important tool for macroeconomic and countercyclical regulation. It should also be noted that strong supply and weak demand are still prominent contradictions facing the current economic operation. The 2025 Central Economic Work Conference once again emphasized the need to focus on stabilizing employment, enterprises, markets, and expectations, and placed stabilizing employment in the first place. Employment is the source of income and the cornerstone of stable expectations. Currently, an important way to solve the supply-demand contradiction is to stabilize and expand the employment of key groups such as college graduates, migrant workers, and retired soldiers, and increase support for entrepreneurship to enhance the employment driving effect. The customer group for government financing guarantees is mainly small and micro enterprises, which can better play their supporting and amplifying role in stabilizing employment and expanding domestic demand. According to estimates from the financing guarantee industry, providing a guarantee of 100 million yuan can stabilize employment for over 800 people. Therefore, there is an urgent need to enhance the precise support of government financing guarantees for employment and entrepreneurship, promote their expansion and increment, reduce fees and benefits, and enhance efficiency, in order to better promote employment and entrepreneurship, and provide strong support for benefiting people's livelihoods, promoting consumption, and expanding domestic demand. At present, relevant documents promote a guarantee resource allocation mechanism guided by employment contribution, support the implementation of entrepreneurship guarantee loan policies, clarify the construction of a quantifiable and assessable index system for financing guarantee employment contribution, and provide preferential re guarantee resources and more re guarantee fees for cooperative institutions with significant employment contribution. In addition, some places are actively exploring and launching various financial products such as "salary insurance", "investment guarantee linkage", "special loans for stabilizing and expanding employment". We need to refine policy measures, make full use of these policy tools, focus on the financing and job stability needs of business entities, promote proactive docking of bank guarantee institutions, and alleviate the financing difficulties of labor-intensive small and micro enterprises. To promote the stable and sustainable operation of government financing guarantee institutions, the next step is to strengthen policy coordination and build a long-term incentive compatible mechanism. A sound departmental linkage mechanism should be established, such as the central bank increasing support for re lending, financial management departments adopting differentiated regulatory policies, and supervisory departments improving assessment and evaluation mechanisms to jointly stimulate the endogenous motivation of government financing guarantee institutions to serve employment and entrepreneurship. By comprehensively utilizing measures such as risk compensation, fee reduction subsidies, and capital supplementation, a virtuous closed loop of "fiscal leverage, guarantee credit enhancement, loan follow-up, and entity benefits" will be constructed. In addition, local governments are encouraged to strengthen the coordination of financial resources, increase capital injection and fiscal incentives, and assist government financing guarantee institutions in expanding their business scale, improving their risk resistance capabilities, and achieving healthy and sustainable operations. Financing guarantee institutions and financial institutions such as banks should also focus on strengthening bank guarantee collaboration, technological empowerment, and product innovation. On the basis of strictly adhering to the risk bottom line, they should optimize business processes, improve financing convenience, and enhance service quality and efficiency to more efficiently meet the diversified financing needs of the market. Author: Ji Fuxing (Professor and Doctoral Supervisor at the University of Chinese Academy of Social Sciences)