Research On Operations Model Of Policy Science And Technology Credit Guarantee Institution

High-tech SME plays an important role in research and development, application and dissemination of innovative and high technology by providing advanced technology development, products and service for market. Hence, they serve as essential fresh troop in innovative and high technology development in China. However, they are confronted with defects such as small size, insufficient capital, high operational risk which leads to financing crunch. Promptly, guarantee companies for high-tech SME are set up to resolve these problems. With government policy support and market incentives, our country witnesses booming growth of such companies. Nevertheless, due to its late existence and featured Chinese social and economic environment, there are numerous obstacles and problems encountered by guarantee companies for hi-tech SME. This paper specializes in the study of such companies, which is not only of significant meaning in replenishing and consummating the guarantee theory, also facilitating sustainable and wholesome development of burgeoning hi-tech enterprises in China.I. Main ContentsPart 1 mainly focuses on literature review. It initially reviews and analyses related theory on credit guarantee. Then it presents definition and demarcation for research object, clarifying research importance and purports.Part 2 is comparative study of operation models on technology credit guarantee companies. This section review operational models and mechanism of technology credit guarantee companies in America, Japan, Germany and Taiwan comparatively by selection of reprehensive companies overseas. Conclusion referential for Chongqing is successfully drawn and the necessity and importance of construction of policy credit guarantee from the perspective of market, government, and company respectively are expounded.Part 3 devotes to the study of current operation status of policy credit guarantee company on technology and science. It begins with the analysis on environment of survival and development for such companies, in aspect of economic finance, law and regulation, social credit environment etc, which assesses its favorable and unfavorable environment. Following that, investigation and statistic analysis are conducted. Then it elaborates the current situation and features of operation; points its deficiencies; predicts probable operation model in the future.Part 4 consists of the study on current operational problems and model of policy credit guarantee companies on science and technology, IFE、EFE and five forces model analysis are applied to obtain the significant factors impacting the operation by quantitative analysis and the extent of significance, aiming at revealing the operation mechanism and construction of efficient, regular operation system.Part 5 is about the operation mechanism and supportive institution construction for such enterprises. It discusses the vital function of incentive mechanism, financial subsidy mechanism, collaborative mechanism between banks and guarantee companies, credit rating mechanism. It also devises the direction and approach of mechanism construction then proposes the construction of law and regulation construction and management objectives for managers. Specific plans and measures for Fund application institution, credit guarantee institution, risk control institution are also suggested.Part 6 summarizes the conclusion and policy proposal. Following the validity analysis of "1+4" technology investment and financing model in Chongqing, it testifies that reasonable organization structure and function demarcation are capable of supporting the operation and development of guarantee companies for hi-tech enterprises. That improvement of operational institution and supportive institution are crucial factors is also expounded. It puts forward suggestions for improvement and innovation of motivation mechanism, financial subsidy mechanism, collaborative mechanism between banks and guarantee companies, credit rating mechanism, explicitly defining further goal and task of government supervision, financial and taxation supportive policy, credit management, inner corporate governanceⅡ Main ConclusionsThrough the summary of fundamental theory, advanced experience overseas for reference, and domestic practical lessons, this essay proposes its original operational model after the employment of strategic analysis tools, responsive conclusions are proposed as follows:1. There is vast development potential for guarantee companies for hi-tech enterprises. Guarantee service from guarantee companies for hi-tech are necessary for the prosperity of hi-tech enterprises and support motivation for hi-tech industry from government.. Therefore, their service quality is urged to be enhanced.2. Operational efficiency of such companies is comparatively low currently. Inappropriate market positioning,ill defined division and cooperation of work between different types of guarantee companies along with deficiencies such as high cost, high risk, insufficient standard ability desiderate sound risk aversion mechanism to be employed.3. Guarantee company for hi-tech enterprises should improve its operation based on domestic situation and successful experience overseas. The status of domestic hi-tech industry and guarantee company for hi-tech enterprises determine the principle that operation approach, management and relative institutional construction must be consistent with social and economic requirement. Meanwhile, referring to operational experience of foreign guarantee company for hi-tech enterprise, guarantee companies must adopt the model of combining policy and market operational style.4. Emphasis must attach to the construction and improvement of mechanism to ameliorate the performance of guarantee companies. Specifically, incentive mechanism could lead and promote the development of guarantee companies as well as keep its operation be consistent with both government orientation and market demands; financial subsidy mechanism is devised to compensate risk loss, which is conducive for sustainable development; collaborative mechanism is capable of achieving high guarantee efficiency by sharing risk; credit rating mechanism is dedicated to control market risk in a quantized way and reduce transaction cost. The construction and improvement of incentive mechanism, financial subsidy mechanism, collaborative mechanism between banks and guarantee companies, credit rating mechanism are the crux for improvement of guarantee company operational performance.5. Institutional construction safeguards the sound and sustainable operation of guarantee companies. Particularly, governance supervision institution contributes to the improvement of credit level and service capability; finance taxation institution provides stable fund source for guarantee companies, amplifying its guarantee scale; credit supervision institution is conducive for the build of a better credit environment and regulation of market economy order; inner corporation governance achieves the purpose of enhancing operational performance and competitive capability; The construction of government supervision institution, finance taxation institution, credit supervision institution and inner corporation governance are of essential importance to secure the development of guarantee companies.Ⅲ Innovative Points1. This paper summarizes operational model of foreign guarantee companies for hi-tech enterprises. Based on the analysis of current guarantee model, operation mechanism and supportive institution in America, Japan and Germany, it concludes that the guarantee model of the combination of government-led and market is the most suitable one, and there should be working mechanism of division of labor and coordination between policy guarantee and market guarantee. On the one hand, clear boundaries of the behaviors of government and market should be identified, and the government should provide sufficient credit, finance and support policies. On the other hand guarantee companies should adhere to operate independently in accordance with market operation rules, to minimize the adverse effects of administrative intervention.2. This paper devises operational mechanism of "investment, guarantee, loan linkage. This specialized operational mechanism is applied by guarantee company on financing platform of hi-tech financing. Led by hi-tech administration departments, connected by fund, it realizes the assemble effect under closed system concentrating on hi-tech program. On the one hand, the combination of guarantee and investment forms a bond between capital market and monetary market, between equity financing and debt financing. Guarantee is able to accumulate premium investment resource and proffer reference and advice of investment decision. Investment serves as source of business for guarantee and t complement each other’s advantages and resources. On the other hand, the cooperation between guarantee and loan business is mainly through the hi-tech bank or financial centre set up by science and technology administration of government and bank. Such collaborative work is beneficial to achieve efficient and effective procedure for guarantee business.3. This paper presents proposal of "1+N" financing model for guarantee companies for hi-tech enterprises. On reference of Chongqing "1+4" model, it explicitly puts forward the operation model of guarantee company, i.e., on the vehicle of "1+N" organisition structure, with the institution guarantee to mechanism and system, this model achieves its function of "investment, insurance, loaning, subsidy and support" in closed circle of technology financing and investment system. Specifically, "investment" refers to both guiding fund and scientific venture capital, directly and indirectly; "insurance" means the indirect investment approach that guarantee companies serve as the main media; "loan" is defined as the loan financing provided by banks. As long as SMEs have obtain affirmation, they are eligible to apply loan from cooperating bank smoothly or get finance by applying for guarantee; "subsidy" includes venture investment funds investment guarantee funds, scientific loan funds and scientific guarantee funds involved party in guarantee system provided by government; "support" represents the service offered by specialized entrepreneurship investment association or union, dedicated to proffering communication opportunity, staff training, promotion, program service.