Optimization Of The Operating Mechanism Of Local Government's Policy-based Guarantee Fund

SMEs are important part of national economy,playing a significant role in promoting technological innovation,industrial transformation and upgrading,as well as increasing employment.Thus,our local governments have also paid more and more attention to the development of small and medium-sized enterprises.However,due to the financial weakness and business risk,it is difficult for SMEs to obtain loans from financial institutions in the absence of collateral or guarantor.Financing difficulty is a big restriction of SMEs' further development.To solve the problem of financing difficulty,China has explored and established a credit guarantee system for small and medium-sized enterprises in 1990 s.In recent years,local governments have set up policy-based guarantee funds to support SMEs' financing.Although these funds have eased the financing problems at a certain extent,in China they are still an emerging thing,which require further inspection.Based on the concepts and theory of policy-based guarantee,this paper studies the optimization of operating mechanism of local government's policy-based guarantee fund by case study,comparative analysis,interview investigation and other research methods.We use L Development Zone as a case to carry out analysis of interview results.The research found that there are still some problems in the operation of the local government's policy-based guarantee fund,such as lack of organization guarantee,single source of funds,limited information integration,shortage of risk constraints,insufficient reward and supporting services and so on.Inthis regard,the paper proposes that local government should not only to strengthen the organization,to broaden the channels of funds,to use modern information technology,but also improve the risk awareness,establishing scientific early warning mechanism and supporting service system for SMEs,so as to improve selfcompetitiveness of SMEs fundamentally.The paper,on the one hand,puts forward suggestions to optimize the operation mechanism of the local government's policy-based guarantee fund from an operational mechanism level,on the other hand,also provides a useful reference for L Development Zone and other local governments that will or have established similar guarantee funds,helping to promote the well-functioning of the guarantee funds and really play the role of the guarantee funds for SMEs.