IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i4d10.1007_s13132-024-01792-5.html
   My bibliography  Save this article

Bridging the Financing Gap for Unlisted Science and Technology-Based SMEs in China: A Comprehensive Evaluation Framework

Author

Listed:
  • Dingjun Yao

    (Nanjing University of Finance and Economics)

  • Ruhao Ding

    (Nanjing University of Finance and Economics)

  • Jiahui Chen

    (Nanjing University of Finance and Economics)

  • Yilin Liao

    (Nanjing University of Finance and Economics)

Abstract

Science and technology-driven small and medium-sized enterprises (SMEs) have emerged as vital players in China’s economic landscape, with unlisted SMEs assuming a significant role. However, these unlisted SMEs face formidable financing challenges, exacerbated by information asymmetry and limited access to diverse funding sources. This research introduces a comprehensive Evaluation Indicator System tailored for unlisted science and technology-based SMEs in Province A, China. Grounded in the Catastrophe Progression Method, this system provides an objective and multidimensional assessment of financing capacity, accounting for factors like innovation, growth, solvency, and regional dynamics. Empirical validation demonstrates the system’s practical relevance, reaffirming its potential as a reliable tool for evaluating financing capacity. The study sheds light on the financing stages of these SMEs, emphasizing the importance of external investment channels, especially for growth-stage enterprises. Bank loans remain the primary financing avenue, underscoring the need for enhanced bank evaluation systems. Policymakers should consider tailored approaches based on SME growth stages to optimize resource allocation and support. By addressing the financing challenges faced by unlisted SMEs and fostering a more supportive environment, this research contributes to unlocking their potential for technological innovation, economic growth, and job creation. It underscores the significance of diverse financing options, the role of external factors, and the need for improved bank evaluation processes to facilitate the growth of these enterprises in the dynamic landscape of knowledge-driven economies.

Suggested Citation

  • Dingjun Yao & Ruhao Ding & Jiahui Chen & Yilin Liao, 2024. "Bridging the Financing Gap for Unlisted Science and Technology-Based SMEs in China: A Comprehensive Evaluation Framework," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18531-18589, December.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01792-5
    DOI: 10.1007/s13132-024-01792-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-01792-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-01792-5?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    2. Kuniyoshi Saito & Daisuke Tsuruta, 2018. "Information asymmetry in small and medium enterprise credit guarantee schemes: evidence from Japan," Applied Economics, Taylor & Francis Journals, vol. 50(22), pages 2469-2485, May.
    3. Neville, Conor & Lucey, Brian M., 2022. "Financing Irish high-tech SMEs: The analysis of capital structure," International Review of Financial Analysis, Elsevier, vol. 83(C).
    4. Saad M. Zighan & Nidal Y. Dwaikat, 2023. "Exploring organisational agility in SMEs," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 49(4), pages 561-576.
    5. Wu, Yiyun & Zhu, Xiwei & Groenewold, Nicolaas, 2019. "The determinants and effectiveness of industrial policy in china: A study based on Five-Year Plans," China Economic Review, Elsevier, vol. 53(C), pages 225-242.
    6. Guangyou Zhou & Lian Liu & Sumei Luo, 2022. "Sustainable development, ESG performance and company market value: Mediating effect of financial performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3371-3387, November.
    7. Obey Dzomonda, 2022. "Environmental Sustainability Commitment and Access to Finance by Small and Medium Enterprises: The Role of Financial Performance and Corporate Governance," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    8. Chenhui Ding & Chao Liu & Chuiyong Zheng & Feng Li, 2021. "Digital Economy, Technological Innovation and High-Quality Economic Development: Based on Spatial Effect and Mediation Effect," Sustainability, MDPI, vol. 14(1), pages 1-21, December.
    9. Deng, Ping & Zhang, Shuo, 2018. "Institutional quality and internationalization of emerging market firms: Focusing on Chinese SMEs," Journal of Business Research, Elsevier, vol. 92(C), pages 279-289.
    10. Tianshu Zhao & Kul B. Luintel & Kent Matthews, 2021. "Soft information and the geography of SME bank lending," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 679-692, April.
    11. Myint Moe Chit, 2019. "Financial Information Credibility, Legal Environment, and SMEs’ Access to Finance," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 26(3), pages 329-354, September.
    12. Benjamin Balsmeier & Steven Vanhaverbeke, 2018. "International Financial Reporting Standards and Private Firms’ Access to Bank Loans," European Accounting Review, Taylor & Francis Journals, vol. 27(1), pages 75-104, January.
    13. Durairaj Kumarasamy & Prakash Singh, 2018. "Access to Finance, Financial Development and Firm Ability to Export: Experience from Asia–Pacific Countries," Asian Economic Journal, East Asian Economic Association, vol. 32(1), pages 15-38, March.
    14. Abdulla Yusuf Al Hawaj & Amina Mohamed Buallay, 2022. "A worldwide sectorial analysis of sustainability reporting and its impact on firm performance," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 12(1), pages 62-86, January.
    15. Lee, Chi-Chuan & Lee, Chien-Chiang & Xiao, Shunyi, 2021. "Policy-related risk and corporate financing behavior: Evidence from China’s listed companies," Economic Modelling, Elsevier, vol. 94(C), pages 539-547.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shiyun Li, 2025. "Leveraging Big Data for SME Credit Risk Assessment: A Novel BP-KMV and GARCH Integration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3321-3349, March.

    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. Rong Xu & Huixian Yao & Junfeng Li, 2025. "Digital Economy’s Impact on High-Quality Economic Growth: a Comprehensive Analysis in the Context of China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 2861-2879, March.
    2. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    3. Yafang Shi & Fuxiang Wei, 2025. "Comparative Analysis of Digital Economy-Driven Innovation Development in China: An International Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4422-4464, March.
    4. Xiaoli Hao & Xinhui Wang & Haitao Wu & Yu Hao, 2023. "Path to sustainable development: Does digital economy matter in manufacturing green total factor productivity?," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 360-378, February.
    5. Roblek Vasja & Meško Maja & Podbregar Iztok, 2021. "Mapping of the Emergence of Society 5.0: A Bibliometric Analysis," Organizacija, Sciendo, vol. 54(4), pages 293-305, December.
    6. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia: The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    7. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    8. Modina, Michele & Pietrovito, Filomena & Gallucci, Carmen & Formisano, Vincenzo, 2023. "Predicting SMEs’ default risk: Evidence from bank-firm relationship data," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 254-268.
    9. Fei, Wei & Liu, Wen-ge, 2024. "Financial structure, development of small and medium banks, enterprise exports," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    10. Xuan Zhang & Jingxian Zhang & Yongjie Feng, 2023. "Can companies get more government subsidies through improving their ESG performance? Empirical evidence from China," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-25, October.
    11. Jean-Michel Sahut & Luca Iandoli & Frédéric Teulon, 2021. "The age of digital entrepreneurship," Small Business Economics, Springer, vol. 56(3), pages 1159-1169, February.
    12. Pankaj C. Patel & Mike G. Tsionas, 2022. "Learning‐by‐lending and learning‐by‐repaying: A two‐sided learning model for defaults on Small Business Administration loans," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 906-919, June.
    13. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    14. Ajithakumari Vijayappan Nair Biju & Snehith Jacob Kodiyatt & P. P. Nithi Krishna & Geetha Sreelekshmi, 2023. "ESG sentiments and divergent ESG scores: suggesting a framework for ESG rating," SN Business & Economics, Springer, vol. 3(12), pages 1-21, December.
    15. Adam Arian & John Sands & Stuart Tooley, 2023. "Industry and Stakeholder Impacts on Corporate Social Responsibility (CSR) and Financial Performance: Consumer vs. Industrial Sectors," Sustainability, MDPI, vol. 15(16), pages 1-21, August.
    16. Kaouther Chebbi & Mohammed Abdullah Ammer, 2022. "Board Composition and ESG Disclosure in Saudi Arabia: The Moderating Role of Corporate Governance Reforms," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
    17. Hui-Lin Zhu & Ke-Zhi Yang, 2024. "The Spillover Effect of ESG Performance on Green Innovation—Evidence from Listed Companies in China A-Shares," Sustainability, MDPI, vol. 16(8), pages 1-31, April.
    18. Weiwei Sun & Xueli Zhang & Min Yuan & Zheng Zhang, 2023. "Complex Network Analysis of China National Standards for New Energy Vehicles," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    19. Liu, Feifei & He, Xinming & Wang, Tao, 2023. "In the name of the family: The effect of CEO clan culture background on firm internationalization," Journal of Business Research, Elsevier, vol. 161(C).
    20. Uzunca, Bilgehan & Sharapov, Dmitry & Tee, Richard, 2022. "Governance rigidity, industry evolution, and value capture in platform ecosystems," Research Policy, Elsevier, vol. 51(7).

    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:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-01792-5. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.