Identification and Root Cause Analysis of the Macro Patterns of the Credit Guarantee System of the technology-based firms

Document Type : Original research

Authors

1 Ph.D. Student in Technology Management, Allameh Tabataba'i University, Tehran, Iran.

2 Associate Professor, School of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.

3 Associate Professor, School of Economics, Tokai University, Tokyo, Japan.

Abstract

Due to the importance of financing the issue of technological and innovative activities in moving towards a technology-based economy, different countries have used different institutional arrangements to solve the problem of financing technology-based firms. The limited efficiency of conventional methods such as government direct financing and venture capital has led to the focus of credit guarantee instruments in recent decades. Accordingly, in Iran, despite the prevalence of the use of credit guarantees, the full capacity of this tool is still not used. Therefore, in the present study, first, the macro patterns of the credit guarantee system based on the study of documents and structured interviews with the representatives of the funds have been identified. Then, the root causes of the identified patterns are extracted based on open interviews with experts. Based on the findings, the most important macro models of credit guarantee system of technology-based firms were identified as follows: 1) non-use of various capacities of the executive framework in the credit guarantee system, 2) non-use of various models of the ownership structure of credit guarantee service providers, 3) focus of existing institutions on contract guarantee, 4) Lack of specialized financial institution providing guarantee service in the private sector, 5) Limited selection of technology-based firms to receive guarantee service, 6) Simultaneous use of two facilities to facilitate initial capital financing and risk coverage for most government funds, 7) non-use of risk-sharing instruments for private funds, 8) non-use of other facilitators by the government, 9) lack of macro-law for financial oversight of the activities of credit guarantee institutions, and 10) existence of several responsible institutions in credit guarantee system.

Keywords



Articles in Press, Accepted Manuscript
Available Online from 28 May 2022
  • Receive Date: 24 July 2021
  • Revise Date: 21 November 2021
  • Accept Date: 22 December 2021
  • First Publish Date: 28 May 2022