Research On The Growth Ability Of The Guarantee Companies In Jiangsu Province

In China’s rapid economic development, the small and medium-sized enterprises (SMEs) have made great contribution and become an indispensable part of the society. However, SMEs’credibility is relatively low, and their information is not transparent; besides they don’t have enough collateral. All of these make it difficult for the SMEs to raise money. The emergence of guarantee companies has solved these problems. As a new industry, the guarantee industry has grown fast but it still cannot meet the requirement of China’s development.Most of China’s guarantee companies are at the beginning stage, so it remains a challenge for the governments and banks to help these companies have a sound and orderly development, playing their active role in the financial market. When developing and strengthening the guarantee industry, there should be a well-established mechanism to evaluate the industry’s growth. With such kind of assessment mechanism, the industrial structure can be optimized and credit risks can be reduced. It can also help the senior managers of the guarantee companies to control the direction and improve the efficiency of making decisions.At present, there have been a considerable number of researches about the growth ability of enterprises in China, but few of them are about guarantee companies. Based on the structural equation model of the growth ability of guarantee companies, this essay studies the financing guarantee companies in different areas in Jiangsu Province to figure out the elements that are influential to these companies’growth ability. In this way, some suggestions can be given according to the conclusion of the study. The influencing factors researched in this essay include external environment, operation capacity, financial condition, human resources, management ability, and financing ability, centered on which the structural equation model is established. In addition, the statistics are acquired by questionnaires, interviews, etc., and are analyzed by AMOS and SPSS. This essay lists descriptive statistics at first, and establishes the equation model to check and modify the statistics, analyzing the loading coefficient when the fit indicies meet the standard, and at last gets the conclusion.