Commercial Credit,Financing Leakage,and the Confidence of Small and Micro Entrepreneurs
This study develops a business cash management model that incorporates the fac-tor of trade credit and investigates the impact of commercial credit supply on the confidence of small and micro entrepreneurs by utilizing data from the China Micro and Small Enterprise Survey(CMES).Empirical findings indicate that an increased supply and extended terms of commercial credit are associated with diminished confidence among small and micro entrepreneurs.Mechanis-tically,the provision of commercial credit leads to a financing leakage effect,whereby bank loans,policy resources,private financing,and operational profits seep from small and micro enterprises to their clients,consequently eroding entrepreneur confidence.Specifically,a leakage of bank credit results in a dual compression effect on both the supply and demand sides of formal finan-cing channels;leakage is more pronounced in supplementary policies compared to abatement poli-cies within the realm of policy resources.Furthermore,the negative impact of commercial credit supply on entrepreneur confidence is more significant in small and micro enterprises with strong customer bargaining power,higher levels of innovation activity,and denser relationship invest-ments.Favorable regional business environments and higher levels of financial development sig-nificantly mitigate the detrimental effects on confidence.Based on these findings,it is recommen-ded to strengthen the monitoring of commercial credit and ensure efficient collection of receiva-bles in small and micro enterprises to bolster entrepreneur confidence.
commercial creditbank loansfinancing leakagecash managementsmall and micro entrepreneur confidence
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万方数据
