The Role of Government in Helping SMEs Access Finance
Author Information
Author(s): Mei Zhu, Zhang Jingjing, Zhou QiaoMei
Primary Institution: School of Management, Jiangsu University, Zhengjiang, Jiangsu Province, China
Hypothesis
How can government involvement improve the financing access of small and medium-sized enterprises (SMEs)?
Conclusion
The study highlights the importance of strategic cooperation among government, banks, and guarantee institutions to create a sustainable financing environment for SMEs.
Supporting Evidence
- The study emphasizes the need for high-quality risk information to reduce default rates.
- Government involvement can enhance the creditworthiness of SMEs.
- Strategic cooperation among stakeholders is essential for effective SME financing.
- Different reward and punishment strategies can motivate banks and guarantee institutions.
- Cost-sharing between banks and guarantee institutions is crucial for sustainable financing.
Takeaway
This study shows that when the government, banks, and guarantee institutions work together, they can help small businesses get the money they need to grow.
Methodology
The study uses numerical simulations based on an evolutionary game model to analyze the interactions between government, banks, and guarantee institutions.
Limitations
The study primarily relies on theoretical models and lacks empirical data from real-world scenarios.
Digital Object Identifier (DOI)
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