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Competing Risk Model for Technology Credit Fund for Small and Medium‐Sized Enterprises

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  • So Young Sohn
  • Hyejin Jeon

Abstract

Despite the need to foster a technology‐intensive industry, most Korean SMEs (small and medium‐sized enterprises) are faced with the difficulty of raising funds. To resolve this problem, the government set up the technology credit fund to give loans to enterprises that achieve a certain technology evaluation score. However, many of the recipient SMEs fail to pay back the loans for various reasons. In this paper, we distinguish two causes of default due to owner and company, respectively, using the competing risk model. The proposed prediction models for competing defaults are expected to contribute to the healthy management of technology finance.

Suggested Citation

  • So Young Sohn & Hyejin Jeon, 2010. "Competing Risk Model for Technology Credit Fund for Small and Medium‐Sized Enterprises," Journal of Small Business Management, Taylor & Francis Journals, vol. 48(3), pages 378-394, July.
  • Handle: RePEc:taf:ujbmxx:v:48:y:2010:i:3:p:378-394
    DOI: 10.1111/j.1540-627X.2010.00299.x
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    Cited by:

    1. Rémi Raher, 2022. "Le business-model entre théorie et pratique : quelle pertinence pour la start-up numérique ?," Post-Print hal-04177249, HAL.

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