Study On New Business Model Of Credit Financing For Agriculture-based Hi-tech SMEs With IT’sSupport

The report is concerned about resolving credit financing bottleneck of hi-tech SMEs of agriculturethrough business model innovation under the IT’s development of information and networktechnique.Enterprises are implementing body of S&T innovation, especially SMEs. Science andtechnology are more focused in SMEs. As transformation and application actor of agri-technologyresearch achievement, hi-tech SMEs of agriculture are related to the development of food safetyand modern agriculture. Finance is playing the key role of modern economy, and is an importantpower of pushing the S&T development. In agri-field, the combination of capital and S&T ishi-tech SMEs of agriculture. But hi-tech SMEs of agriculture have difficulties to get finance tosupport their business. Credit financing is main resource of hi-tech SMEs of agriculture fromoutside. But in comparison to other kind of enterprises, the chance of hi-tech SMEs of agricultureis much less. We found asymmetric information, the credit circumstance, the support fromgovernment and the new technique are the key factors which affect credit financing of hi-techSMEs of agriculture. As of now, there are two model of credit financing in our country: one istransaction credit model based on “hard information”, the other one is relationship model based on“soft information”. All these models partly meet the financing need of hi-tech SMEs of agriculture,especially relationship model of credit. But the course of this kind of credit financing needs morecost. We need find a new way to innovate credit financing model.With the support of IT, carrying on business model innovationto make the value added hit lotsofmanagers. We got some examples: Taobao has changed the model of consumption and starting abusiness; Quanqiuwang has formed net structure of contact between banks and enterprises; theWinpower provides some service with gathering capital resources to make the enterprise haveaccess to financing. These examples are achieved with business model innovation. Based on theseexperiences, we reconfirmed to resolve the asymmetric information is more important. The newbusiness model must play some main roles: gathering the information, dig the information andanalyzing them. The paper is based on some theories, such as mass collaboration fromWikinomics, long-tail theory from management, asymmetric information form economics ofinformation, credit rationing from finance. The paper put forward to building an e-platform ofcredit financing to serve hi-tech SMEs of agriculture. SMEs, some department of government,intermediary service organizations, enterprises which related to hi-tech SMEs of agriculture aregathering in the e-platform. The e-platform will form enterprises basic database, the system ofcredit, expert database and so on. With the operation of the e-platform, social and economy goalare achieved at the same time. In the comparison of old credit financing model, the e-platformmakes some innovation as follows: innovation of transaction processing, increasing cluster ofenterprises and combination between online and offline business, strengthening the relationshipamong enterprises, and the process of credit financing.