Research On The Problem Of Credit Guarantee For Small And Medium - Sized Enterprises

SMEs in china have been contributing a lot in creating employment opportunities,increasing fiscal revenues and promoting the growth of GDP, whether the difficulties of financing SMEs facing has been always the SMEs’ development obstacles. Refer to the SMEs’ financial difficulties, severe asymmetric information in our country which is caused by many reasons is playing an important role, and owning to asymmetric information, on the aspects of quantity and quality, financial serves cannot fulfill the demand of SMEs. The initial intention of the establishment of credit guarantee organization(CGO) is to eliminate or reduce the extent of asymmetric information impact which exist between SMEs and financial organization-especially banks, and then to remit the SMEs’ financial difficulties. When we come to the function of CGOs they contributed to SMEs’ financial problem, most researchers hold positive attitude,however, there are also many scholars hold the opinion that CGOs have limitations that if CGO cannot solve the SMEs’ problem better than banks, it just performs a function of risk transfer.Presently, they are three types of CGO-the policy-lead type, the commercial-lead type and the mutual help type. The researches about SME credit guarantee problem in our country is focuses on which of those three types of guarantee should plays the leading role, the theoretical profound of credit guarantee, the legal issues, the core competitiveness of the CGO, the risk control of CGO and so on. Base on the existing literatures, the studies about how to solve the SMEs’ financial difficulties better through promoting CGOs’ business mode innovation are rare.Although the industry CGO which is focus on one industry’s business is rarely been talk about Presently, it has a lot of exist evidence. As industry CGO which caused by market segmentation is a kind of financial innovation, the study of it is meaningful. It can help us know more about the essence of CGOs, diversify the credit guarantee products, and then help us solve the SMEs’ financing problems, meanwhile,to achieving sustainable development CGOs should also set up an effective risk control measure, which is contributed to its supervision and filter capacity about SMEs business, reflect the function of resource allocations, which is also an important aspect in SMEs’ financial problem. Base on my experience in CGO and guided bytheories, I want point out the evidence of industry CGOs, and then I want to show the function of industry CGO about SME’s financing problem at the condition of asymmetric information, using case analysis.In my paper, the first chapter briefly introduced the urgency of SMEs’ financial problem, the four stages and prospects of CGO; The second chapter point out the credit guarantee way is insufficient to solve SME’s financing problem; The third chapter using economic model based on asymmetric information theory and risk diversification theory, analysis industry CGO’s function in the SMEs’ financing problem and its risk characteristics; The fourth chapter is focus on the details of industry CGO’s business mode and risk control measures incorporate with Yunnan A industy credit guarantee company’s business activities, then these analysis come to conclution that the A company can do better than CGOs when dealing with the SMEs’ problem in Yunnan jewelry industry. At the final chapter I reviewed my main opinion:on the risk control and operate aspect, industry CGO can do as good as CGOs, what’s more, its own contribution to the financial problem of SMEs cannot be replace, then I proposed my suggestions and resolutions.