Research On The Impact Of China's Supply Chain Finance On The Financing Constraints Of SMEs

Since the reform and opening up,SMEs have always played an indispensable and important role in China's market economy.Especially in the current context of mass entrepreneurship and innovation,SMEs,as the source of vitality for economic development,play a key role in securing employment,securing finance,securing investment,securing foreign investment,securing foreign trade and securing expectations.However,due to the long-term financing constraints of a considerable number of SMEs,"high financing costs and difficult financing" have become a major bottleneck hindering the survival and development of China's SMEs.To alleviate the financing difficulties in the development of small and medium-sized enterprises in China,government departments actively encourage banks and other financial institutions to innovate financing models,and supply chain finance has emerged as the times require.The development of supply chain finance has not only broadened the financing channels for SMEs,but also provided new solutions for easing the financing constraints of SMEs.Based on the theoretical research results and practical exploration experiences of domestic and foreign enterprises on financing constraints and supply chain finance,this paper uses the qualitative analysis and quantitative analysis in accordance with the research ideas of "theoretical basis-research hypothesis-empirical test-policy recommendations".The combined method analyzes the current situation of China's supply chain finance and SME financing constraints,reveals the current operating mechanism of China's supply chain finance,and mitigates the financing constraints of SMEs,and selects small and medium-sized listed companies on the Shenzhen Stock Exchange in 2013.Relevant data from 2017 as a research sample,based on the cash-cash flow sensitivity model,systematically explored the financing constraints of SMEs in China and the impact of supply chain finance on SME financing constraints.The main conclusions are:(1)At present,a considerable number of small and medium-sized enterprises in China are facing a shortage of funds in the development process.Due to their low information transparency,poor corporate image,and lack of effective collateral(collateral),it is difficult to obtain low-cost financing from the outside.During the development process,it was greatly constrained.Financing constraints have become a major bottleneck restricting the development of China's small and medium-sized enterprises,mainly manifested in high financing costs,difficult financing and high financing risks;(2)China's supply chain finance has shifted from the initial exploration stage to the rapid development stage and the market scale Continuously expanding,now there are mainly financing models such as prepaid accounts,inventory collateral,and receivables pledge,which show the characteristics of diversification of participating entities,innovativeness of credit evaluation and closed,conscious and continuous operation processes;(3)China's small and medium-sized enterprises have financing constraints,which are manifested as significant cash-cash flow sensitivity.This is due to the fact that due to their many constraints,small and medium-sized enterprises can hardly obtain external funding with low financing costs,and can only rely on limited internal funds.Carry out investment activities.Therefore,these SMEs will continue to withdraw funds from existing cash flows to ease their financing constraints and meet their own business development needs,so there is significant cash-cash flow sensitivity;(4)the development of China's supply chain finance can Effectively alleviate the financing constraints of SMEs.Not only in the expansion of financing channels,but also in its unique financing environment,which has broken through the financial restrictions on commercial banks and other financial institutions for SMEs in the past,and thus proves that supply chain finance has a high applicability and Great development potential and value;(5)The government has strengthened support,improved laws and regulations,and improved the credit guarantee system,etc.at the financial level,it has optimized market access mechanisms,improved financial markets,and strengthened risk prevention;Measures such as restricting internal causes and improving the comprehensive quality of staff have promoted the development of China's supply chain finance,and then eased the financing constraints of SMEs to ensure their sustainable and healthy development.