A Study On Mitigation Effects Of Agricultural Supply Chain Finance On Financing Constraints Of Agriculture-Related SMEs

The agriculture-related SMEs have the dual attributes of "agriculture,farmer and rural area" and "small and medium-sized enterprises".They have made great contributions to the development of Chinese economy.However,due to the small scale,insufficient collateral assets,inaccurate accounting and high non-performing loan ratio,agriculture-related SMEs are faced with serious financing constraints.The development of agricultural supply chain finance has explored a supportive development path for deepening the reform of the rural financial system and enhancing the financial service level of the relevant financial institutions for agriculture-related SMEs.Firstly,the literature on the supply chain finance and the financing constraints of SMEs are reviewed.Secondly,the structure of the agricultural supply chain network is described.Thereafter the participation role,the management content and the financial function of the agricultural supply chain finance are discussed.The structure of the financial system of agricultural supply chain is set up.Then,the function of supply chain finance for SMEs financing is theoretically analyzed.Afterwards,using operational research methods to construct a financing strategy model for agriculture-related SMEs,comparing and analyzing the costs and benefits of traditional financing models and supply chain financing models for SMEs in agricultural supply chain.Then,I explore the effect supply chain finance has on mitigating the financing constraints of SMEs.At the same time,the earnings of the participating entities are analyzed.After that,this thesis examines the financing constraints faced by SMEs and the role of agricultural supply chain finance in mitigating SME financing constraints.An empirical analysis method is used with the financial data of 137 listed agricultural SMEs for the years from 2012 to 2016 inclusive.Finally,we draw the conclusion of this thesis.The main research results of this thesis are shown in the following three aspects: First,this thesis starts from the basic concepts of supply chain finance,constructs the agricultural supply chain financial system,and analyzes the relationship between the participants and their operating characteristics.Second,through the derivation of the theoretical model,this thesis finds that,by adopting the supply chain financing model,SMEs in the agricultural supply chain can improve the financing possibilities,reduce the financing costs,and the financing constraints can be eased.At the same time,all participants in the agricultural supply chain finance can get benefits.Third,the empirical study of this thesis finds that SMEs face financing constraints.Among them,the financing constraints faced by agriculture-related SMEs are more severe than those of other industries.The development of supply chain finance plays an important role in mitigating SME financing constraints.The development of agricultural supply chain finance has a significant effect on mitigating financing constraints of agriculture-related SMEs,but it was slightly lower than other industries.In addition,from the perspective of different financing models' effect on easing SME financing constraints,the receivables financing model has better effect on alleviating SME financing constraints than the prepayment financing model.Based on the above conclusions,this thesis suggests that,government departments should strengthen policy support and institutional guarantees,financial institutions need to constantly innovate products and services and SMEs should improve their operational capacity to promote the development of agricultural supply chain finance.