Big-data-driven Model Construction and Empirical Analysis of SMEs Credit Assessment in China

Abstract

Most of SMEs(Small and Medium-size Enterprises) in China are facing severe financing constraints, while credit reporting could be effective to help overcome it. However, traditional credit reporting mainly based on financial data, can hardly give a well-rounded evaluation on SMEs limited on financial data while flourished in non-financial data. In this work, we propose a big-data-driven credit assessment framework for SMEs, highlighting the combination of financial and non-financial data including big data from business, government, social media & networks. An application to 123 SMEs in China inllustates that our methodology outperforms the traditional one, especially for those SMEs of worse financial conditions.