A Comparison Of Japanese And American Credit Guarantee Systems Of Small And Medium Enterprise

Under the market economy, like large companies, small and medium enterprise has enterprise has become indispensable components of the market. Although nowadays there are popular pursues for large-scale economy, there are pervasive practices of company merges, and there are more apparent enterprise flattops, the survival and development of small and medium enterprise are generally attached significance and paid close attention by most of the governments around the world. Because of the inferior position that small and medium enterprise stands in enterprise scale as well as competition situations compared to large and huge enterprise, many governments in the world have adopted multiple methods to support small and medium enterprise. The credit guarantee system of small and medium enterprise discussed in this topic is an important component of the government'supportive policies, and it's also an indispensable part of the financial supportive policies of the government worldwide. Aiming at the survival dilemma caused by capital deficiency faced by most small and medium enterprises, many countries have provided multiple supports for small and medium enterprise to get loans. The first choice for developed countries is build the credit guarantee system. In this topic, we will compare and analyze the credit guarantee systems in Japan and America, and we will also analyze the status quo of the credit guarantee system of small and medium enterprise in China. We will focus on summarizing the successful experiences as well as the failing lessons, which will be a useful academic advice to sophisticate the credit guarantee system of small and medium enterprise in China. This paper makes analysis in five points, in brief overview, it including the following parts: Part â… .The loan dilemma of small and medium enterprise and credit guarantee system. There are various ways to build administrative finance to support small and medium enterprise. Some developing countries turn to administrative banks for small and medium enterprise to provide developed countries and areas support such enterprise by building credit guarantee system for small and medium enterprise with the help of their mature and sophisticated modern commercial financial organizations. Compared with administrative banks for small and medium enterprise, there are several advantages for credit guarantee system: First, there is a "firewall"made by the system between small and medium enterprise and commercial financial organizations, it will shorten the loan gap for small and medium enterprise while ensuring that commercial principles are abided by in commercial financial organizations. Secondly, the system will make small and medium enterprise know more about loan risks, they will have adequate understanding of the counterpart roles played by loan risks and loan ability, and they will be more conscious of risks. Thirdly, the system will help avoid the "free pass"possible for administrative bank loans, so that the government will have more efficient operation of its investment. Moreover, by providing credit guarantee for small and medium enterprise through the credit guarantee system, we can put into better play the effect and the multiplying effect of governmental capital, hence efficiently improve the utilization performance of governmental credit guarantee foundations. In this part, solutions to ameliorate the loan dilemma of small and medium enterprise are discussed. Also, credit guarantee system is introduced and the credit guarantee systems for small and medium enterprise are comprehensively and comparatively researched. In the end, the relationshipbetween credit guarantee system for small and medium enterprise and the outside environment is studied. Part â…¡.This part include the second, third and forth points of the paper. In this part, credit guarantee systems for small and medium enterprise in Japan and America are discussed, and their same points and different points are researched. Japan is the first country to enhance credit guarantee system of small and medium enterprise in the world. Japan has long been exercising supportive policies for small and medium enterprise, and have pretty sophisticated credit guarantee systems for small and medium enterprise. America has a highly advanced capital market. Owing to its government's supportive attitude for small and medium enterprise, America has an administrative supportive system with the Small Business Service as the kernel and administrative guarantee system as the body. I completely anatomized the course of the construction and development of the credit guarantee systems for small and medium enterprise in Japan and America, and I described the operational modes and characteristics of these systems. In the forth point of the paper, I based my research on comprehensive and systematic information gathered regarding the two countries as well as their accompanying favorable administrative policies and measures. I researched comparatively in various credit guarantee systems for small and medium enterprise, summarized their regularities and contrasted their disparities. Through his omni-directional, multi-level, and multi-angle comparison and research, I thoroughly and guarantee systems of Japan and America and parsed their generalities and differences. I integrated theoretic research and concrete analysis, and with an evidence-prove-theory method, I thoroughly analyzed the variances of the small and medium enterprise credit guarantee systems ofmultiple countries, so that we can understand the positions of credit guarantee more directly and effectively. Such approach of mine is much more convincing than hollow expositions of credit guarantee theories. I has put much strength on research in the operational risks of the credit guarantee system of small and medium enterprise itself. I emphasized on controlling the system both internally and externally, so that the small and medium enterprise credit guarantee system can improve its risk prevention ability and upgrade its risk prevention level while the system is assured to run well. Part â…¢.The development of Chinese credit guarantee systems for small and medium enterprise. Based upon the comparative research of the last part, this is a specialized research in the development of the credit guarantee system for small and medium enterprise in China. We intended to analyze theoretically and discuss how to enhance the credit guarantee system for small and medium enterprise in China, so as to provide a reference to improve the performance of the system. In contrast to foreign credit guarantee systems for small and medium enterprise, such system in China started in the early 1990's. Because the administrative finance system in China is not advanced enough, there are two major problems in carrying out supportive methods for small and medium enterprise for many years. Firstly, it's hard to position the credit guarantee system for small and medium enterprise. It's unclear whether to build the system as an administrative or commercial financial method. There are even formal commercial and executive administrative predicaments out of this problem. Secondly, considering the status quo of the credit guarantee organizations for small and medium enterprise in China, it is a common abuse nowadays that credit guarantee organizations in China are too small, have too...