Narrow Results

With the development of technological innovation and global economic integration, high-tech enterprises across the world have formed numerous innovation ecosystems with similar natural ecological characteristics. As a result, competition has shifted from single enterprise to supply chain network, and ultimately, to innovation ecosystem, which involves more participants and roles across multiple industries. The current study distinguished two innovation capabilities (internal innovation potential and collaborative open innovation), and two sources of innovation capabilities (internal integration and external integration) along with discussing the specific relationships among integration activities, innovation capabilities, and Hi-tech SMEs’ financing performance. It further explored how interactions between within and cross firm-boundary activities and collaboration exert influence on SMEs’ financing performance and manifested the importance of external collaborative networks to the competitiveness of SMEs.

This study provides a way of understanding to analyze the performance of SME credit both from the demand and supply sides. Both primary and secondary data are used which are collected from entrepreneurs of SMEs and the head office of Rajshahi Krishi Unnayan Bank, a leading SME loan providing government-owned agricultural development bank in the Rajshahi district of Bangladesh. Some descriptive statistics, accounting and financial techniques, and a regression model are used to analyze the data. The study finds that the average ROA of SMEs is 35.87% and the ROE of SMEs is 62.81%. It indicates that the SMEs are earning more than the cost of the fund collected from the institutional sources. It is also observed that there is a significant effect of institutional credit on ROE of SMEs but not on ROA. On the other hand, the growth rate of SME NPL is higher than the total NPL during the study years that is of course alarming regarding SME loan recovery. The institutional SME credit should be increased by applying proper strategies for increasing loan recovery performance.

In Asia, small and medium-sized enterprises (SMEs) account for the major share of employment and dominate domestic economies, yet providing these companies with access to finance is a challenge across the region. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in particular with regard to venture capital. As a result, banks are the main source of financing for SMEs. It is crucial for banks to be able to distinguish healthy from risky companies. If they can do this, lending and financing SMEs through banks will be easier. In this paper, we explain the importance of SMEs in Asia. Then, we provide a scheme for assigning credit ratings to SMEs by employing two statistical analysis techniques—principal component analysis and cluster analysis—applying 11 financial ratios of 1,363 SMEs in Asia. If used by the financial institutions, this comprehensive and efficient method could enable banks and other lending agencies around the world, and especially in Asia, to group SME customers based on financial health and adjust interest rates on loans and set lending ceilings for each group.

Emergence of the Fourth Industrial Revolution, and the need for inclusive growth and other changes in the environment, require innovation in Republic of Korea’s guarantee system. The Korea Credit Guarantee Fund, hereafter referred to as “KODIT”, has provided credit guarantee services in a variety of industries and companies to achieve the dual policy goals of industrial development and market stabilization. It has also served as a market safety net in the event of national crisis, including the Asian Financial Crisis in 1997 and the Global Financial Crisis in 2008, helping the Korean economy quickly overcome them. Based on these experiences and results, KODIT is now seeking to vary its role in this rapidly-changing economic and technological environment, from merely providing guarantee services for small- and medium-sized enterprises (SMEs) to implementing innovation in the enterprise-wide business structure with a view to creating an innovative ecosystem, building data banks and platforms, and spreading social values. This chapter contains KODIT activities and performance in terms of its efforts to play a new part in this changing environment. We expect that the cases presented in this chapter will provide effective policy implications for the facilitation of SME financing in Asia, where public policy financing is relatively more important than in advanced countries, where venture capital investments are widely adopted and used.