A Study On The Financing Of The SMEs In The Industrial Cluster

Porter thought the competitive advantage of the nations depends on the competitive industry which can be obtained from the industrial cluster. There are some examples. Silicon Valley's information industry, Hollywood's entertainment industry and California's wine cluster catch everyone's eye because of their huge strength in competition. Like the industrial cluster, the financing of the SMEs is also a hot topic. So the article has studied the financing ways and the financial structure of the SMEs in the industrial cluster. From the study, we can see that the financing is easier for the SMEs which is in the industrial cluster.First, the article has studied the financing ways, and finds that the industrial cluster is helpful to both the external financing and the internal financing. There are three reasons. First, the enterprises in the industrial cluster have high earning power for their lower cost from the external economies, this can be the source of the internal financing. Second, the complicated relationship based on the blood and the same place decreases the asymmetry of the information, which makes the external financing easier. Third, the SMEs in the cluster cheat less and have less opportunistic action because of the credit produced by the enterprises for their long term cooperation between each other and the embededness which means the enterprises can not leave the place, which also helps to the external financing.Then, the article has studied the financial structure, find that the cost during the financing process can explain why it is difficult to finance for the SMEs instead of it after the financing. Compare to the other financing ways, borrowing from the finance institutions is a more expensive way, so when the other financing ways can be easily used, the necessity of the loan from the finance institutions will decrease, and this is...