Study Of Financing Problems For Sme Within Industrial Cluster Based On The Social Capital Theory

Small and medium-sized enterprises(SME) play a irreplaceable role in economy growth, offering jobs opportunities, technique innovation. In recent years, with the fast development of SME, the difficulty in financing and managing arise and become serious. Government has already issued a series of finance and tax policies and academia has put on a lot of suggestions on various points. One aspect should be noticed on such difficult financing circumstance is, enterprises within the industrial clusters appear to have advantage in financing. This article will focus on SMEs within industrial clusters, trying to help SMEs reduce the pressure on financing.This article introduce the concept of social capital as the view point to analyze the problems of clustering enterprises financing problems. Social capital describes the characters of social organizations improve social efficiency by commuting and cooperating, such as credit and network relations. All the organizations have social capital, enterprises within industrial clusters enhance their social capital by frequent communicating and cooperating. This article defines social capital as credit and network relations. In an industrial cluster, the frequent communicating and loaning of an enterprise with other enterprises and banks enhance the credit between each other, hence credit mechanism works which helps enterprises obey the contract and lowing the difficulty in borrowing money from banks and other enterprises. Network relations of clustering enterprises is an net which combines weak connections between enterprises and other institutions and strong connections between enterprises and families, relatives and familiar people. This kind of connection help the enterprises have agilities in many aspects such as short term credit, assure, mutual borrowing, resource sharing and industry information. Social capital which an enterprise owns will play a role in aspects as enhancing information symmetrical exchanges, lowing credit risks, reducing financing cost, improving trusting and reducing qualifications of assure and mortagage, which forms the advantages in financing.The articles digs and analyses the financing problems of SMEs in industrial clusters. In the theory sector, based on relevant literature and former study, author analyses the credit and network mechanism, summarizes their improvements on enterprise financing. In the demonstration sector, author takes the wood processing industry in Pizhou City, Jiangsu Province as an example. After research about the industry development, enterprises, credit demand conditioning and the finance institutions, supply condition, author gives a demonstration about advantage of clustering enterprises and the positive relation between social capital and financing convenient degree based on the data of200investigations. The conclusions are as the following:(1)With the help of SPSS component analysis tool,enterprises, social capital can be conclude into three components, which separately means enterprises participating degree in social activity, credit degree, network relations density.(2)By comparing the data between enterprises in and away from industry clusters, the conclusion is that enterprises in industry clusters has advantages in financing difficulty, time to get the loaning and qualifications of assure and mortagage.(3)By linear regression, on the conditions that other variables are steady, the relation between financing convenient degree including financing difficulty, time to get loaning and qualifications of assure and mortagage and the social capital components including enterprises participating degree in social activity, credit degree, network relations density, is positive.And finally, author put forward suggestions after demonstration and cases analysis.