Comparative Study Of Credit Guarantee For SMEs In Mainland And Taiwan Of China

Practice has shown that both the developed and developing countries, SME as an important part of the national economy play an indispensable role. Establishment of credit guarantee system to ease the financing of SME, is the national government to support development of SME in general practice. Mainland China also established a guarantee system for SME, but due to late start, lack of experience, there are various deficiencies in practice.Known as the "kingdom of SME," said China's Taiwan region, where attaches great importance to the management and services to SME. As early as the mid-60s in the 20th century, the Taiwan authorities set up a "Guidance for SME working group" on international economic cooperation and Development Committee and introduced the credit guarantee system for SME in 1974. This is relatively early in the world, and achieved remarkable results that is worth learning from.In this context, the paper firstly described significance and purpose of theoretical research briefly; Secondly, the article identifies the concept of the SME credit guarantee and its inevitability, then uses adverse selection theory, market failure theory, transaction cost theory, quasi-public goods theory to provide theoretical support for the research; Thirdly, analyze environment for the development of SME Credit Guarantee comparatively, including the definition of SME standards, policies and regulations, development and financing status, which indicates that Taiwan's development environment of SME credit guarantee fund is relatively mature; Fourthly, briefly introduced the development of SME credit guarantee and characteristics, including the history, architecture and management system, developing features, that can be seen the gap of credit guarantee on development; Fifthly, reference the system in Taiwan, focusing on the role of government in the credit guarantee and through the relevant model analysis, if the government can establish the basis of financial support, financial compensation, the replenishment of the mechanism and the establishment of risk-sharing mechanism, then the SME credit guarantee will play a greater leverage effect, bringing more economic and social benefits; Sixthly, by reference to Taiwan, mainly from the establishment of laws and regulations, to play a leading role in government, improving the financial environment for SME and to speed up infrastructure of credit construction Propose solutions; VII, Conclusions and Outlook.