Research On The Impact Of Inclusive Finance On Financing Constraints Of Small And Medium Enterprises

In the economic and social context,the development of small and medium-sized enterprises is of great significance in both developed and developing countries.Small and medium-sized enterprises occupy an absolute advantage in quantity.Since the reform and opening up,China’s small and medium-sized enterprises have achieved rapid growth,making up more than 90% of the total number of enterprises in China,and also creating considerable wealth for the country.Therefore,small and medium-sized enterprises play an important role in China’s development.However,small and medium-sized enterprises face enormous challenges in the development process.Due to the short period of establishment,small scale,and small number of personnel of small and medium-sized enterprises,their ability to resist risks is weak.In addition,the lack of external credit guarantee mechanisms and the imperfect legal and regulatory systems for financing small and medium-sized enterprises have made it difficult for the enterprises in China to obtain financial services consistent with their level of contribution,which has greatly limited their development.From the perspective of inclusive finance to alleviate the financing constraints of small and medium-sized enterprises,this article explores the problems existing in the development of inclusive finance,and explores the current situation,forms and causes of financing constraints for the enterprises in China.The data used in this model are all from CSMAR database,People’s Bank of China,China Banking Association,China Banking and Insurance Regulatory Commission,etc.This article analyzes the issues based on the collation of domestic and foreign literature on the impact of inclusive finance,digital inclusive finance,and financing constraints on SMEs.Firstly,the relevant concepts and theories are elaborated.Secondly,it also studies inclusive finance,digital inclusive finance,and the financing difficulties of small and medium-sized enterprises in China.Thirdly,taking the enterprise board and the growth enterprise board as samples,we use the cash cash flow sensitivity model to conduct empirical research from both traditional and digital inclusive perspectives.Finally,this paper concludes that financing constraints are an important issue facing the enterprises in China.Inclusive finance has played an important role in alleviating financing constraints for the enterprises.After analysis,it is found that traditional inclusive finance has a better mitigation effect on the financing constraints of state-owned small enterprises,while digital inclusive finance has a better mitigation effect on non-state owned small enterprises.Finally,in order to more effectively alleviate the financing effects of the enterprises,this article provides specific countermeasures from the government level,financial institution level,and enterprise level.