Research On Effective Operation Mode Of Credit Guarantee Organizations For Small And Medium-sized Enterprises

The experience of world economy development indicates that although the big enterprises are backbones of national economy, small and medium-sized enterprises (SMEs) have extensive development space as well. After sixties to seventies of the 20th century, countries all over the world, including China, have paid close attention to SMEs' functions on employment expansion, market flourish, incomes increase, promotion of social stability and forming rational national economic structure, etc. However, because of weak financial strength, big business risks, insufficient pledges, lacking credit records and information transparency, SMEs meet many difficulties especially the difficulty of getting enough lending from banks. In order to solve this problem, many countries have introduced credit guarantee system to offer enough credit support for SMEs. This is an apotheosis of combination of market mechanism and macro adjustments and controls. It is also the important means to dissolve financial risks and improve the financing environment. Practice has proved that, on Chinese lending market, the joining of credit guarantee organizations (CGOs) can alleviate the financing difficulty of SMEs to a certain extent. But Chinese credit guarantee system still needs to be improved further. And because Chinese CGOs have many problems concerning operation mode, capital source and losses share, risks control and outside environment since the earlier design stage, they are undertaking an enormous guarantee loss risk, and their operation efficiency is generally low. In a word, they are far from meeting the financing demands of SMEs.In order to solve the above problems, a perspective research on "How to run credit guarantee organizations for Chinese Small and Medium-sized Enterprises effectively?" is carried on. And the author tries to find an effective operation mode for Chinese CGOs. It will promote persistent development of CGOs and can make credit guarantee for SMEs brings better social and economic benefits, serves the development of SMEs lastingly, and promotes the ordered development of Chinese financial market. In a word, this dissertation research has importanttheoretical and practical meanings to sustainable development and effective operation of CGOs for Chinese SMEs.The following section provides a brief explanation to topics presented in the dissertation:Financial difficulties faced by SMEs are the system background of the research, so the dissertation makes an analysis for it firstly. SMEs definition standards are discussed at the beginning. Then the existence meaning and key value of SMEs are explained with ultra marginal analysis and evolutionary division of labor theory in new classical economics. And through the comparison of domestic and international relevant data, the author analyzes the current situation of Chinese SMEs financing. Then considering about how CGOs promote SMEs financing efficiency and their risk control and management, the author propose theoretical explanation on "How to run CGOs for Chinese SMEs effectively under asymmetrical information?" with credit rationing theory, equilibrium theory and asymmetrical information theory. Finally, the author points out that the setting-up of CGOs for SMEs is to offer credit support to potential SMEs that have insufficient credit records, so they can obtain loans from banks. It is not established for bad SMEs to alleviate their poverty. Therefore the standards of SMEs that can be accepted by CGOs are put forward.Then the author introduces the current operation modes of CGOs in Japan, U.S.A., Taiwan and Mainland of China in details. Using comparative research approach to analyze the similarities and differences of current operation modes of CGOs in China and abroad and summarize the characteristics of current operation modes and existing problems of the CGOs in mainland of China.Based on theoretical and comparative analysis in the above parts, a conclusion is made that mutual CGOs are the most effective one among the three kinds of CGOs to promote SMEs financing efficiency. So the author structures an new "A main fact with two complements" mode of Chinese CGOs for SMEs taking mutual CGOs as the main entities and analyzes the operation problem of this mode in details in this part. And the operation of the three kinds of CGOs under this mode is put forwardat the end.Except for reasonable operation mode, capital sources and loss compensation mechanism, risk control is another essential element which will influence the efficiency of CGOs. So starting from inside and outside of CGOs, all kinds of means to control and disperse guarantee risk are discussed, including setting up a credit rating index system of SMEs, implementing counter guarantee, etc.Effective operation of CGOs needs cooperation of perfect outside environment, so the author researches the establishment of outside environment cooperated with effective operation of CGOs from four aspects, including the credit information management system of SMEs, construction of laws and regulations, social service system of SMEs and property right trade market.Combining with the above research, a discussion is carried on how to promote efficiency of CGOs for SMEs of Hunan Province with "A main fact with two complements" mode through investigation on current situation of CGOs for SMEs of Hunan Province and Liuyang CGO and the index comparative analysis to this company operation performance.Finally, the author summarizes the conclusions of the dissertation and point out the directions that are worth studying further in the future.