Research On Bank's Credit Support For Agricultural Science And Technology SMEs

Agriculture is the foundation of China's national economy.Agricultural science and technology is an important support for the development of modern agriculture in China.Agricultural science and technology based enterprises play a leading role in the transformation of agricultural science and technology in China,among which the Small and Medium-sized Enterprises(SME)are the main forces in promoting the development of modern agriculture.As the only national agricultural high-tech zone,Yangling unites and cooperates with Northwest A & F University and Yangling V & T College,to build a close-knit platform integrating production,study and research,which attracts and nurtures a large number of SMEs based on agricultural science and technology,with technological innovations,outcomes,and integrated applications,as well as providing foreign science services.However,due to their own “defects”,financing difficulty has becoming one of the biggest bottlenecks for development of this type of enterprises.Banks,especially commercial banks,currently as the most essential external financing channel,ease the problem effectively.Therefore,research on financial support of commercial banks for agricultural science and technology SMEs is not only beneficial to the financing of SMEs,but also conducive to the development of commercial banks,which is of critical and practical significance.Based on the relevant theories such as credit ration theory,Schumpeter innovation theory,and corporate financial growth cycle theory etc.,and through in-depth study of the academic theories researched by scholars at home and abroad,this paper explores the concepts of agricultural science and technology SMEs and credit support,further analyzes the development status,credit support characteristics,and credit support status of Yangling agricultural science and technology SMEs,which concludes the three difficulties of financial support for these enterprises: difficult loans,high costs,and low matching,which also analyzes the reasons by taking a three-pronged approach from SMEs,Banks and credit-enhanced institutions,as well as our country.Finally,combined with other domestic successful experiences,this paper proposed a series of measures to solve agricultural science & technology-based SMEs financial support issues: to strengthen self-construction of the SMEs themselves,to increase the service level of financial institutions such as banks,and to play a positive role in encouraging and supporting national policies.The conclusion of this paper can provide a realistic reference for development of both China Agricultural S&T based SMEs and financial institutions.