IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0315941.html
   My bibliography  Save this article

The role of government in helping SMEs to access finance: An evolutionary game modeling and simulation approach

Author

Listed:
  • Zhu Mei
  • Jingjing Zhang
  • QiaoMei Zhou

Abstract

Purpose: This study aims to delineate the operating system of a strategic game model involving three core financial actors—government, banks, and guarantee institutions, with a focus on their collective impact on system evolution towards sustainable SME financing. Methodology: Utilizing numerical simulations informed by dynamic equation constraints and optimal equilibrium states, this paper abstracts the strategic behaviors of system constituents, constructing a game model to predict and analyze system evolution within various operational contexts. Results: The simulation experiments reveal the critical role of quality risk information and responsible actor behavior in maintaining low default rates and fostering a sustainable financial system. System trajectories under various scenarios highlight the fragility of the equilibrium and the necessity of concerted, strategic cooperation among all stakeholders. Conclusions: Findings underscore the importance of a cooperative, conscientious approach by government, banks, and guarantee institutions to ensure a robust and sustainable SME financing environment. The study advocates for strategic policy guidance, emphasizing the interconnectedness of institutional roles and their cumulative effect on system stability.

Suggested Citation

  • Zhu Mei & Jingjing Zhang & QiaoMei Zhou, 2024. "The role of government in helping SMEs to access finance: An evolutionary game modeling and simulation approach," PLOS ONE, Public Library of Science, vol. 19(12), pages 1-31, December.
    • Handle: RePEc:plo:pone00:0315941
    DOI: 10.1371/journal.pone.0315941
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0315941
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0315941&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0315941?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lorenzo Gai & Maria Cristina Arcuri & Federica Ielasi, 2023. "How does government-backed finance affect SMEs’ crisis predictors?," Small Business Economics, Springer, vol. 61(3), pages 1205-1229, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Masahina Sarabdeen & Shafinar Ismail & Putri Aliah Mohd Hidzir & Hind Alofaysan & Suharni Rahmat, 2025. "The Role of Social Financing in Promoting Social Equity and Shared Value: A Cross-Sectional Study of Small and Medium Enterprises in Malaysia and Saudi Arabia," Sustainability, MDPI, vol. 17(5), pages 1-25, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0315941. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.