Research On Financing Constraints Of SMEs And Chattel Financing

Small and medium-sized enterprises(SMEs)play an important role in the national economy:promoting economic growth,expanding employment,increasing tax revenue and promoting scientific and technological innovation.They are of strategic significance for economy to maintain medium-high growth rate and high-quality development.However,the current development of SMEs is facing many difficulties and challenges which inhibit the role of small enterprises in economic growth,one of the important obstacles is the financing problem which has become a bottleneck restricting the future development of SMEs.Therefore,it is of great value for economic and social development to systematically study the causes of financing constraints of SMEs and put forward reasonable and feasible solutions.The financing problem of SMEs is not only China's own problem,but also a common problem faced by SMEs all over the world.From the financing problem of SMEs in China,there are not only the common problems of SMEs all over the world,but also the distinctive Chinese characteristics.SMEs in China both show the survival of the fittest and the complexity of the macroeconomic ecological environment.I systematically summarized and analyzed the ways of financing,the concrete manifestations of the problems and the current popular methods of financing of SMEs in China,and explored a way to solve the financing problem of SMEs from the perspective of "chattel financing".In paper,I studied the financing obstacles of SMEs from five aspects:first,from the overall level,I analyzed the current development of China's SMEs and the relationship between SMEs and economic growth,meanwhile I pointed out the importance of the development of small and medium-sized enterprises and the necessity of solving the financing problems of SMEs.Second,from the macro level,I explored the financing constraints of SMEs and analyzed of the financing status and financing system of SMEs to find the causes of financing constraints of SMEs by Qualitative and quantitative methods.Third,from the perspective of micro enterprises,I also tested whether SMEs face serious financing constraints.Fourth,as an important measure to alleviate the financing difficulty and high financing cost of SMEs,I analyzed the long-term and short-term impact of this measure on easing financing constraints and macroeconomic.Fifth,I put forward countermeasures and suggestions.The characteristics of this paper are mainly reflected in three aspects:first,it clearly proposes and demonstrates that "chattel financing" is an important measure to alleviate the financing constraints of SMEs.One of the main factors of financing constraints of SMEs is that they lack effective collateral.It has a good prospect to relax the scope of mortgage and materials to alleviate the loan constraints.Especially with the continuous improvement of financial infrastructure such as public credit system and the development of LOT and big data information technology,It has become a reality that SMEs can fully tap their effective assets as collateral financing.However,as an important measure to alleviate the financing constraints of SMEs,the "chattel financing" has not been analyzed and evaluated strictly in macroeconomic theory.This paper shows a new theoretical framework,introduces real estate assets into a new classical growth model with loan constraints,and discusses the long-term and short-term changes of macro total variables after relaxing the size and types of mortgage assets in the loan constraints.I analyzed the important role of the financing constraints of real estate in macro-economy.Secondly,the data and indicators are expanded when I analyzed the effects of financing constraints and economic performance on economic growth of SMEs empirically.I systematically collated the national and provincial development indicators of SMEs from 1997 to 2015 and used many econometric tools such as static panel estimation model,dynamic panel model and panel mean group(xtmg and xtcce)estimation to study the effect of financing constraints and economic performance on economic growth of SMEs in China.In order to study the financing constraints of SMEs from a more micro level,two groups of micro enterprise data are collected and sorted out.I studied the relationship between investment-cash flow sensitivity,cash-cash flow sensitivity and financial constraint of SMEs in China by using multi types of financial constraints.Specifically,the two data sets are:the first group is 15066 high-tech SMEs data from 2005-2007,with a total of 45198 sample observations;the second group is 777 new and three board listed SMEs data,totaling 2813 sample observations.The degree of corporate financing constraints is measured by SA index,ASCL index and WW index.Third,I has made some progress in analyzing the causes of financing constraints of SMEs.I summarizes the causes of financing difficulties of SMEs in China through the collation and analysis.of a large number of documents and related policies,mainly including asymmetric information,uneconomic scale,imperfect system and immature model.The financing mode is emphasized in the cause analysis.In financial practice,financing mode is the key to solve the financing problem of SMEs.Different financing modes have certain risks,different applicable conditions and applicable periods.When the applicable conditions and environment change,the original effective financing mode can not alleviate the financing constraints,but also make SMEs fall into more serious financing difficulties.This paper mainly includes the following three parts:The first part shows the development status of SMEs in China and the role of SMEs in macro-economic growth.I explains the development of SMEs in China and its important role in China's economic growth from the macro level,and confirms the significance of studying and alleviating the financing problems of SMEs in China.First,from the perspective of historical change,I systematically combed the changes of the standards for the classification of SMEs since the founding of China and the standards used in this paper.Secondly,due to the data limitation,I arranges as many development indicators of SMEs from the mid-1990s to 2015 as far as possible.The development of SMEs in different regions and provinces is compared horizontally and vertically,and the differences between regions are analyzed.Finally,using panel estimation model,I made an empirical study on the role of SMEs in macro-economic growth,which proves that the development of SMEs plays an important role in economic growth.On the basis of clarifying the macro situation of the development of small and medium-sized enterprises and their role in economic growth,this paper makes a relatively systematic qualitative analysis of the financing status of small and medium-sized enterprises in China in order to further explore the possible problems in the financing of small and medium-sized enterprises in China.Firstly,I analyzed the current financing system,financing mode and financing environment of SMEs and discussed the expression of the financing surplus constraints of SMEs,and then studied whether the financing status of SMEs can match the development of SMEs.Finally,I stated the causes and Enlightenment of financing constraints of SMEs in China.In the second part,we research the investment and financing behavior of SMEs in the current external financing environment of China from the perspective of quantitative and empirical.From the discussion in Chapter 4,we can find that there are many financing support systems and measures for SMEs,whether these measures can promote the SMEs to finance from the outside and alleviate the financing constraints still need to be tested and analyzed.I used as much available data as possible.First,I selected the angel investment research database and the new third board listed SMEs data.Although not all the SMEs,the SMEs that can enter angel investment research database and the new third board are SMEs with good development and can obtain more external financing.If these enterprises also exist the significant investment cash flow sensitivity and cash flow sensitivity,the other SMEs with limited external financing will face more significant problems in this respect.Secondly,the degree of financial constraints is measured by SA index,ASCL index and WW index.Finally,through the study of the sensitivity of investment-cash flow and cash-cash flow sensitivity of SMEs,it is found that under financing constraints,financing constraints cause sensitivity of investment-cash flow and sensitivity of cash-cash flow,SMEs tend to seek internal ones Financing and hold more cash assets.So it indicated that it is necessary to seek new ways to solve the financing constraints of SMEs from the perspective of SMEs themselves and the existing financing characteristics in China.In the last part,we research a kind of external financing method to alleviate the financing constraints of SMEs-"chattel financing".Due to the inherent characteristics of SMEs and the limited internal financing amount and scale,the existing external financing system and environment can not effectively alleviate the financing problems of SMEs.Therefore,we need to explore new effective financing methods according to the original shortcomings.According to my analysis,"chattel financing" will be an effective way to supplement and expand the existing financing methods.I constructed several DSGE models to comprehensively explain the role of"chattel financing" on the development and economic growth of enterprises,and provided theoretical basis for the promotion and implementation of "chattel financing",and then analyzed the policy suggestions for the implementation of"chattel financing".Although I has studied systematic on the financing problem of Chinese SMEs,there are still two aspects that need to be further studied.First,there are some deficiencies in empirical data.Due to the availability of data,it is still unsatisfactory and only covers the relevant data before 2016.Therefore,the policy implications corresponding to the empirical estimates had some limitations.Second,I established a DSGE model to study the heterogeneous capital of different assets as collateral which can estimate the loss of financing constraints on China's macro economy and the improvement of macro efficiency after introducing the chattel.However,the model does not contained real and nominal frictions commonly used in DSGE literature,which will be extended in future research to study the impact of heterogeneity capital and lending constraints on macro economy more accurately.