The Empirical Analysis On Bank-enterprise Relationship,Enterprise Age And Availability Of Credit Of SME

Since the implementation of the reform and opening-up policy,there have been more and more economic players,among which private enterprises,especially the small and medium-sized enterprises(SMEs),have gradually developed to be an important source of fiscal revenues and played an irreplaceable role in promoting China's economic development,solving employment issues and improving the standards of living.However,SMEs are facing numerous financing restrictions,and the absence of support from financial institutions is greatly impeding the development of Chinese SMEs.Difficult and expensive financing has enormously increased the operating cost of SMEs and thereby frustrated their enthusiasm in doing business.Despite their important role in expanding the economy,SMEs are confronted with greater difficulties and costs in getting loans from banks than large-scale enterprises,which is especially the case with private enterprises.In stark contrast to their outstanding contribution to economic development,Chinese SMEs have narrow financing channels.Difficult and expensive financing has hindered the expansion of SMEs,the development of Chinese society,and the improvement of the standards of living,which makes it a focus of attention of politicians and scholars.In China,bank-enterprise relationship is studied and delved into mostly on the basis of the existing foreign research,and such studies mainly focus on the length and scale of bank-enterprise relationship without taking into account such informal institutional factors as the embedment of bank-enterprise relationship in the social network of enterprises.At the same time,when exploring how bank-enterprise relationship affects loan availability,Chinese scholars neglect the influence of different stages of life cycle SMEs are in.According to foreign and domestic research and proceeding from the bank-enterprise relationship in the traditional sense and the bank-enterprise relationship defined from a people-centered perspective,this paper establishes enterprise age as an index to study how bank-enterprise relationship influences the loan availability of SMEs when they are in different age stages.In the end,on the basis of the results of empirical research,this paper presents forward-looking suggestions for Chinese SMEs to develop their relationship with banks and points out in which direction this research should be improved.Studying bank-enterprise relationship and the loans to SMEs can partly help solve the difficult financing of SMEs,and introducing the bank-enterprise relationship defined from a people-oriented perspective can offer an empirical support for SMEs to build a more suitable relationship with banks.