A Review of Research on the Causes and Initiatives of Small and Medium-sized Enterprises Financing Constraints

Bo Chen; Bingqing Sun

doi:10.63313/EPP.2002

Authors

Bo Chen School of Economics and Management, Southwest Petroleum University, Chengdu 610500, China Author
Bingqing Sun School of Economics and Management, Southwest Petroleum University, Chengdu 610500, China Author

DOI:

https://doi.org/10.63313/EPP.2002

Keywords:

Financing Constraints, Research Review, Small and Medium-sized Enterprises

Abstract

Green financing for SMEs faces severe financing constraints, which has become a key obstacle to their green transformation. By systematically combing rele-vant literature, this paper finds that green financing for SMEs in China mainly faces three major constraints: information asymmetry, insufficient collateral and high financing cost. To address these problems, three countermeasures are proposed: building a risk-sharing mechanism, developing a financial technology regulatory platform and introducing third-party green certification. The study suggests that intangible asset collateralization and financial product innovation need to be promoted in the future to effectively alleviate the financing difficul-ties of SMEs and promote green transformation. The study provides an im-portant reference for improving the green financial system.

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