Roles of the Public Credit Guarantee System and Regional Financial Institutions in Supporting Startup Firms: Evidence from a Survey by the Aichi Credit Guarantee Corporation
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In cooperation with the Aichi Credit Guarantee Corporation, we sent a questionnaire to 3,988 startup companies whose loans are guaranteed by the Corporation. We conducted this survey in September 2017 and received responses from 967 companies. Based on this questionnaire survey, this chapter examines the way that credit guarantees support the foundation and growth of startups. It confirms that companies using credit guarantees are expanding employment. But various complaints about the use of credit guarantees remain and it is necessary to eliminate such discontent and make guarantees easier to use. In addition, it is hoped that public support will be provided through credit guarantees at the startup period when risks are large, and that financing by private financial institutions will become dominant as startups grow. Unfortunately, some private financial institutions have not taken sufficient care of guaranteed borrowers. Many improvements are still needed in this respect.
KeywordsStartup Credit guarantee Regional financial institutions
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