International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Countermeasures Research on Credit Constraints of New-type Agricultural Management Entities
Sun Fubing, Song Fugen

Credit constraints such as difficult financing and expensive financing are the main reasons that plague the development of new-type agricultural management entities. Based on a questionnaire survey of nearly 500 new-type agricultural management entitiesin Zhejiang Province and interviews with 105 senior agricultural financial institutions, this paper uses the Probit model to analyze the new-type agricultural management entities from three perspectives: new-type agricultural managemententities, financial institutions, and government departments. This study found that factors such as the weak asset strength of new-type agricultural management entities, the large amount of credit demand, the strict requirements of financial institutions for approval, and the lack of supportive government policies and measures have led to signing checks on credit constraints. Therefore, countermeasures such as innovative mortgage guarantee mechanisms to make up for the lack of credit, speeding up the construction of the rural credit system, reducing transaction costs, effectively distinguishing credit subjects from their uses, adopting differentiated credit policies, and improving the production and operation capabilities and management levels of business entities are alleviated credit constraints of new-type agricultural management entities.

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