The Effect Of Credit Constraints On Innovation Of Small And Micro Enterprises

In the process of China’s economic development,China’s small and micro enterprises have ushered in a golden period of development.It plays an important role in expanding employment,promoting entrepreneurship and innovation,and promoting the steady development of the national economy.At the same time,China’s small and micro enterprises need a lot of financial support in the process of development,but related studies have shown that the financial support provided by China’s financial market for small and micro enterprises is far from meeting the credit needs of small and micro enterprises.The continuous existence of credit constraints in the form of “credit constraint” will threaten the survival and development of small and micro enterprises,and even affect the adjustment of the whole industrial structure.Thus it can be seen that there is a big gap between the contribution of China’s small and micro enterprises to the domestic economy and the loan support of financial institutions to small and micro enterprises,and they are in a state of “strong position and weak position”.The credit demand of its development process is difficult to obtain the financial support of the financial structure,and the problem of credit constraint is more serious.Small and micro enterprises are not only the most responsive and active cells in China’s market economy,but also the most dynamic and creative market subjects.As an important micro subject of innovation in China,small and micro enterprises have made more prominent contributions to innovation.Many innovative ideas are put forward from small and micro enterprises,and small and micro enterprises have become one of the indispensable driving forces for the implementation of innovation-driven development strategy in our country.At the same time,the difficulty of financing has been restricting the development of small and micro enterprise innovation in our country,this study combines the current situation of credit financing of small and micro enterprises in China on the basis of credit financing theory,innovation theory,market failure theory,signal transmission theory and resource basic theory.Based on the survey data of small and micro enterprises in Shandong Province,the corresponding index system and model are constructed.From the perspective of micro-finance of small and micro enterprises,this paper studies the impact of credit constraints on the innovation of small and microenterprises and the impact of quantiles ofcredit constraints.On this basis,this paper makes a further analysis on the impact of credit constraints and innovation of small and micro enterprises from different aspects and angles,including the impact of different intensity,different channels,and different types of credit constraints on the innovation of small and micro enterprises.In addition,in order to ensure the robustness of the conclusion,the robustness test was carried out by using tail reduction treatment,changing variables and so on.It also makes an expansionary analysis,that is,it further studies the regulatory effects of the characteristics of ownership,industries and the level of economic development in the region where small and micro enterprises are located on the above effects.The main contents and conclusions of this paper are as follows:(1)This paper empirically examines the impact of credit constraints on the innovation of small and micro enterprises,including the impact of credit constraints on the innovation of small and micro enterprises and the impact of quantiles on the innovation level of small and micro enterprises in different quantiles.The main results are as follows: The main results are as follows: Frist,the average treatment effect(ATE)model based on propensity score matching(PSM)is used to study the net impact of credit constraints on the innovation activities of small and micro enterprises.The results show that credit constraints inhibit the innovation activities of small and micro enterprises,showing the decrease of innovation investment,the number of patent applications and innovation income.Robustness test is carried out by increasing or replacing variables and tail reduction.To further explore the moderating effect of ownership,industries and the level of economic development in the region where small and micro enterprises are located on the above effects,the inhibitory effect of credit constraints on the innovation of small and micro enterprises is more prominent in private enterprises,high-tech enterprises and small and micro enterprises in areas with poor economic development.Second,using quantile treatment effect(QTE)model to further estimate the quantile impact of credit constraints,that is whether there are differences in the impact of credit constraints on small and micro enterprises at different innovation levels.The results show that the absolute loss of credit constraints on small and micro enterprises innovation increases greatly with the increase of quantile,and its significance level is also increasing.From the perspective of the relative loss of the impact of creditconstraints on the innovation of small and micro enterprises,its impact shows an“inverted U-shaped” relationship.For the small and micro enterprises with the median innovation level,the relative loss of credit constraints is the largest.(2)Construct the credit constraint strength index of small and micro enterprises and use the generalized propensity score matching(GPS)to construct the continuous treatment effect model(CTE model)to estimate the impact of credit constraint intensity on the innovation of small and micro enterprises.The results show that the intensity of credit constraints on small and micro enterprises is still relatively high and the greater the intensity of credit constraint of small and micro enterprises,the stronger the restraining effect on enterprise innovation,the higher the level of significance.The robustness test is carried out by adding or replacing variables and tail reduction,and further discusses the moderating effect of ownership,industries and the level of economic development in the region where small and micro enterprises are located on the above effects.It is found that the inhibitory effect of credit constraint intensity on the innovation of small and micro enterprises is more prominent in private enterprises,high-tech enterprises and small and micro enterprises in areas with poor economic development level.(3)According to the credit channel,the credit constraint suffered by small and micro enterprises are divided into formal credit constraint,informal credit constraint and mixed credit constraint,and the credit constraint indexes of small and micro enterprises in different channels are constructed.Based on the generalized propensity score(GPS),a multiple treatment effect model(MTE model)is constructed to estimate the impact of credit constraints in different channels,and compare the differences of credit constraint in different channels.The results show that the mixed credit constraint has the most obvious inhibitory effect on the innovation of small and micro enterprises,and the significance level is the highest,followed by formal credit constraint.Through the robustness test of adding or replacing variables and tail reduction,this paper further discusses the moderating effect of ownership,industries and the level of economic development in the region where small and micro enterprises are located on the above effects.It is found that the inhibitory effect of credit constraints on the innovation of small and micro enterprises in different channels is more prominent in private enterprises,high-tech enterprises and small and micro enterprises in areas with poor economicdevelopment level.(4)According to whether the credit constraint suffered by credit demanders are passive acceptance or active choice,credit constraints are divided into demand based credit constraint and supply based credit constraint,and different types of credit constraint indexes of small and micro enterprises are constructed.Based on the generalized propensity score matching(GPS),a multiple treatment effect model(MTE model)is constructed to compare the effects of different types of credit constraints.The results show that demand based credit constraints have a more serious impact on the innovation of small and micro enterprises.Through the robustness test of adding or replacing variables and tail reduction,this paper further discusses the moderating effect of ownership,industries and the level of economic development in the region where small and micro enterprises are located on the above effects.It is found that the inhibitory effect of different types of credit constraints on the innovation of small and micro enterprises is more prominent in private enterprises,high-tech enterprises and small and micro enterprises in areas with poor economic development level.(5)Finally,the paper puts forward some countermeasures to alleviate the credit constraints of small and micro enterprises in China from the three dimensions of small and micro enterprises,government and financial structure,so as to provide reference countermeasures and path implementation plans for the relief of credit constraints of small and micro enterprises in China.It can promote the healthy and sustainable development of small and micro enterprises in our country.Small and micro enterprises play an important role in the implementation of innovation-driven development strategy in China.It is of great theoretical significance and practical value to study the impact of credit constraints on the innovation of small and micro enterprises from different aspects and angles.The research of this paper expands the theoretical research on the related theories of corporate financing and the relationship between credit financing and innovation.In terms of practical significance,studying the impact of credit constraints on the innovation activities of small and micro enterprises provides reference countermeasures and path implementation plans for alleviating the problem of credit constraints of small and micro enterprises in our country;Establish an effective connecting mechanism between formal financial institutions andinformal financial institutions to achieve complementary advantages between them;To eliminate the "credit panic" of small and micro enterprises,so as to effectively alleviate the inhibition of their own credit demand;Formulate policies and measures for the government,financial institutions and other relevant departments to stimulate the innovation vitality of small and micro enterprises,it has important policy implications to provide a theoretical basis for promoting the innovative activities of small and micro enterprises.