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Academic Journal of Business & Management, 2024, 6(12); doi: 10.25236/AJBM.2024.061228.

Analysis of the Financing Constraints of Banking Competition on Small and Medium-sized Science and Technology-based Enterprises and Research on Countermeasures to Mitigate Them

Author(s)

Chen Menglong

Corresponding Author:
Chen Menglong
Affiliation(s)

School of Economics, Qingdao University, Qingdao, Shandong, China

Abstract

Small and medium-sized enterprises (SMEs) generally face financing constraint difficulties in their rapid development process. In order to promote the healthy development of small and medium-sized science and technology enterprises, the research on the analysis of the financing constraints of banking competition on small and medium-sized science and technology enterprises and the mitigation countermeasures are proposed. Firstly, the relationship between banking competition and enterprise financing is analyzed by combining the information disintermediation theory and the financing order theory. The non-financial listed science and technology enterprises of small and medium-sized boards are selected as research samples, and the cash-cash flow model is used to test the financing constraints of SMEs, and the impact of banking competition on the financing constraints of SMEs is examined through the expansion model, and the financial data of SMEs used are empirically analyzed. The analysis concludes that banking competition can alleviate enterprise financing constraints and broaden credit channels for SMEs, while balancing the service and financing costs of both parties to the transaction. It also puts forward countermeasure suggestions, including improving the enterprise credit system, improving the enterprise information disclosure system, and improving the degree of enterprise financial technology utilization, etc., aiming to promote the smooth cooperation between the two sides of the credit and to promote the better service of finance to the real economy.

Keywords

small and medium-sized enterprises; banking competition; credit financing; financing constraints; empirical study

Cite This Paper

Chen Menglong. Analysis of the Financing Constraints of Banking Competition on Small and Medium-sized Science and Technology-based Enterprises and Research on Countermeasures to Mitigate Them. Academic Journal of Business & Management (2024) Vol. 6, Issue 12: 199-207. https://doi.org/10.25236/AJBM.2024.061228.

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