Small and medium-sized enterprises (SMEs) play an important role in our economy, but its fund bottleneck problem has not been solved. The SMEs financing difficultly has becomes a very hot theory problem. Using existing theory and original fieldwork, This paper develops a framework to explain how social embeddedness affects an organization's loan acquisition and cost of loans, thus get different market influences. The ability of a firm to acquire loan is a result not only gained by the firm's own characteristics but also the firm's network structure. Commercial bank industry in Hangzhou has always been competitive. I conducted field researches about the acquisition of loans inside banks, all the interviewees stated that they would fully consider the borrower's social background and relationship, which illustrate affects of social network to obtaining capital. This paper analyses firm's control variables inside commercial banks and explains firm's financing problem from the perspective of structure embeddedness exploringly and innovatively.
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