Study Of The Factors Influencing The Credit Constraints Of Small And Micro-sized Enterprises

Small and micro-sized enterprises are an important part of Chinese market economy and the source of the vitality of our country's economic construction.They play an irreplaceable role in stimulating economic growth,absorbing social employment,stabilizing social development,improving socialist market economic system,promoting technological innovation,enhancing comprehensive competitiveness and increasing national revenue.However,small and micro-sized enterprises have the inherent problems such as low starting point,weak strength,irregular management,lack of funds and so on.These problems not only make the small and micro loans having great default risk and high unit cost,but also make banks very cautious about lending to small and micro-sized enterprises because of information asymmetry.All these reasons eventually lead to small micro-enterprise difficult to get loans,and some other financial problems of small and micro-sized enterprises.This paper is devoted to exploring the current financing status of small and micro-sized enterprises,further analyzing influencing factors that affect the Credit Constraints on Small and Medium-sized Enterprises(CCSMEs),and discussion on the solution to the problems from the angle of the Grass-roots branch(branch A).Qualitative analysis shows that CCSMEs are objectively existed in China,and they are mainly caused by credit constraints.The hard information based on financial information of the enterprise is an important influencing factor for banks to impose credit constraints on small and micro enterprises.Based on related content of qualitative analysis,take Branch A as an example,using empirical analysis to verify the opinion above.The author got effective questionnaires of 195 small and micro-sized enterprises via survey and obtained sample data and financing situation of 138 small and micro-sized enterprises with financing demand.Using the Probit model to explore the influencing factors of the CCSMEs by using this sample data,which are the influencing factors of credit constraints on small and micro-sized enterprises.The empirical results reveal that there is a significant positive correlation between small and micro-sized enterprises' ability to obtain loans and hard information indicators such as enterprise size,profit level and life period.There is a significant negative correlation with the ratio of assets and liabilities.It is negatively related to whether or not the enterprises belong to the second industry.So here comes a conclusion that enterprise size,profit level,asset liability rate,life span and industry attribute are important factors that affect the existence of credit constraints for small and micro-sized enterprises.Enterprises with small scale,low profit level,high asset liability rate and short survival time are more likely to be constrained by bank credit,it is more difficult for them to finance.Finally,based on the empirical analysis,combined with small and micro loans with the income composition of Chongqing Industrial and Commercial Bank Branch A,In order to bring some inspiration to the relevant personnel of Commercial Bank Branch,some suggestions are drawn in this paper from the two perspectives of the bank(branch A)and enterprises in order to improve and alleviate the problem of CCSMEs.Facing the impact of Internet finance,turning challenges into opportunities,using Internet technology to reduce transaction costs,controlling risks and reducing credit constraints caused by information asymmetry.Meanwhile,the bank should also speed up the perfection of the reward and punishment system,set up special assessment bonuses for small and micro-sized enterprises,encourage employees to use precise marketing on small and micro-sized enterprises,encourage junior credit managers to offer loans to small and micro-sized enterprises,and promote the development of small and micro loan business;They need to transform their inherent thinking and convert their former bank products(loans)centered mindset to customers focused,that is,small and micro Enterprises as the center of focus,and actively provide small and micro enterprises with the financial products and services suitable for them.Changing their passive style of work to active marketing,improving the core competitiveness of the basic Banks,creating a new point of profit growth.Small and micro-sized enterprises should innovate and develop,widen and subdivide the market,accelerate the transformation and upgrade,establish a good credit to form a virtuous circle.