Affiliations: [a] School of Management/Institute of Financial Engineering, Jinan University, Guangzhou, China
| [b] School of Literature and Communication, Nanfang College Guangzhou, Guangzhou, China
| [c] Industrial and Commercial Bank of China Zhuhai City Branch, Zhuhai, Guangdong, China
Correspondence:
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Corresponding author. You Ge, Ph.D., School of Management, Jinan University, Guangzhou, Guangdong, 510632, China. Tel.: +8613924015384; E-mail: youge123@stu2018.jnu.edu.cn.
Abstract: Small and medium-sized enterprises (SMEs) have been suffering from the problem of “difficult and expensive financing.” The few loans available are allocated unevenly to SMEs, resulting in a financing mismatch. To address this problem, this paper constructs a system dynamics model to simulate and calculate the theoretical loan amounts of SMEs. Compares the values between the theoretical and actual loan amount to find out the enterprises with extreme values of the difference. Then, it analyzes the characteristics of the index data of these enterprises to explore feasible solutions to solve the financing mismatch problem. The CRITIC and AHP weight determination methods will be used to calculate weights and screen indicators. The data will be quantified and calculated according to the standardized scoring table of enterprise borrowing factor indicators. The results show that enterprises with actual borrowing amounts higher than the theoretical borrowing amount perform better than other sample enterprises in three indicators: growth rate of primary business income, the upper limit of the loan amount, and subsidy amount. The actual loan amount can be increased by improving these indicators. This research can help solve the problem of financing mismatch to realize effective resource allocation and provide significant guidance for the research on enterprises to obtain more loans.
Keywords: Dual-Cycle, SME financing, system dynamics, borrowing amount, simulation analysis
