The Research On Financial Support In Chinese Small And Medium-Sized Enterprise Credit Guarantee

The small and medium-sized enterprises (SMEs) play a pivotal role in the development of Chinese economy, but"financing"has been plaguing its existence and expansion seriously."Financing"is the problem of loans in essence, as the SMEs don't have the enough credit and collateral for loans that banks require.Therefore,the development of small and medium-sized enterprise credit guarantee (SMECG) has become an important breakthrough to solve this problem.However, the nature of small and medium-sized enterprise credit guarantee makes market failure worse. Small and medium-sized enterprise credit guarantee has great external economy, and it is a high-risk sector, what's more, credit guarantee products have the nature of quasi-public goods. These make the development of small and medium-sized enterprise credit guarantee can't rely on market mechanisms solely. The government's support, especially financial support is essential. Therefore, exercising direct investments, financial subsidies, tax incentives and other financial measures to support small and medium-sized enterprise credit guarantee by the government is necessary.Based on the materials of the development of small and medium-sized enterprise credit guarantee in Hunan Province, this paper carries out the empirical researches on the effect of government's financial support for small and medium-sized enterprise credit guarantee. The studies have shown that, the government pouring financial capital through injection into the credit guarantee organizations (CGOs) for SMEs and other measures generates favorable effect. Moreover, it also increases the supply of credit guarantee products for SMEs, improves the efficiency capital utilization and makes financial resources play an amplification effect. In addition,the studies indicate more attention should be paid to the regions which presents a significant potential effect of financial support, namely, having greater market and demand preferences of credit guarantee products, to make the financial capital a better usage.There are still many problems of Chinese government's financial support for small and medium-sized enterprise credit guarantee, which need to be further improved and optimized. Government should strengthen financial support to be specific and statutory, and reduce the randomness. Optimize the investment structure and ways of financial funds, and adjust in accordance with the development of small and medium-sized enterprise credit guarantee at different stages of the situation and practice. Utilize the financial support to improve the risk-sharing mechanisms of small and medium-sized enterprise credit guarantee. Promote the rational distribution of credit guarantee organizations. With financial support a positive role, excessive government intervention should be avoided.