Construction of a New Financial E-Commerce Model for Small and Medium-Sized Enterprise Financing Based on Multiple Linear Logistic Regression

Construction of a New Financial E-Commerce Model for Small and Medium-Sized Enterprise Financing Based on Multiple Linear Logistic Regression

Ping Wang, Wei Han
Copyright: © 2021 |Pages: 18
DOI: 10.4018/JOEUC.20211101.oa4
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This paper expounds on the development prospects of SMEs and E-commerce finance, and illustrates the significance of developing online finance. It also introduces the commonly-used research methods of the two kinds of financial models, such as multiple linear regression method and logistic regression method, and analyzes the reasons for the financing difficulties of SMEs. Currently, the high financing cost is the main reason for the financing difficulties of SMEs. Several reasons are account for the high financing cost. Among them, high financing cost,low-efficiency financial system,long financing cycle and the loan information asymmetry account for 35%, 21%, 19% and25% respectively. In addition, this paper clarifies the advantages and disadvantages of network finance and the necessity of developing online finance.
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1. Introduction

According to the enterprise market research report, the number of SMEs is huge and play an extremely important role in all businesses. The contribution made by SMEs is even more important, contributing 60% of the country's gross national product (GNP) annually. Moreover, the annual export volume of foreign trade has reached 68.3% of the national total, and the profits and taxes occupied 52.2% of the national total (Abe et al., 2015; Xiang & Worthington, 2017). In addition, SMEs pay more attention to product innovation and patent applications. At present, the number of patent inventions owned by the companies accounts for 65% of the country.The technological innovation of enterprises reaches 1375% or more, and it brings 780% of new products in various fields to society. SMEs have become an important part of the national economy and exerted positive effects on the socialist market economic system,economy, investment, job creations, the rejuvenation of the country through science and education, and taxation (Ann et al., 2019; Oumaya & Gharbi, 2017). However, the small and medium-sized enterprises suffer from small scale, unstable capital chains, poor management ability, and lack of internal financial data and human allocation information. This leads to non-credit behaviors of financial institutions to SMEs and hinders the development of SMEs, the normal operation and business development. Many enterprises will be unable to obtain financing and lead to capital chain break, resulting in the company out of business or even bankruptcy. Therefore, it is imperative to solve the problem of financing difficulties for SMEs (Bryson & Daniels, 2015; Sang et al., 2017). E-commerce finance uses Internet technology and information technology to put traditional financial products to the Internet, resulting in a new financial business model that includes capital flow, Internet payments, online investment, and information services. E-commerce finance currently involves seven major formats, namely, Internet payment, equity crowdfunding, e-commerce fund sales, online lending, Internet insurance, Internet trust and Internet consumer finance. With the rapid development of e-commerce finance, these new types of financial business models have gradually replaced the traditional financial model (Hilsenrath & Pogue, 2017; Khan et al., 2019; Han 2020). The development of e-commerce finance has brought tools, such as big data risk control, for e-commerce financial platform to collect and verify information of SMEs and quantify repayment ability and repayment willingness, so as to reduces the number of SMEs. Information asymmetry greatly controls the bad debt rate of financial institutions.

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