The role of government in helping SMEs to access finance: An evolutionary game modeling and simulation approach

PLoS One. 2024 Dec 27;19(12):e0315941. doi: 10.1371/journal.pone.0315941. eCollection 2024.

Abstract

Purpose: This study aims to delineate the operating system of a strategic game model involving three core financial actors-government, banks, and guarantee institutions, with a focus on their collective impact on system evolution towards sustainable SME financing.

Methodology: Utilizing numerical simulations informed by dynamic equation constraints and optimal equilibrium states, this paper abstracts the strategic behaviors of system constituents, constructing a game model to predict and analyze system evolution within various operational contexts.

Results: The simulation experiments reveal the critical role of quality risk information and responsible actor behavior in maintaining low default rates and fostering a sustainable financial system. System trajectories under various scenarios highlight the fragility of the equilibrium and the necessity of concerted, strategic cooperation among all stakeholders.

Conclusions: Findings underscore the importance of a cooperative, conscientious approach by government, banks, and guarantee institutions to ensure a robust and sustainable SME financing environment. The study advocates for strategic policy guidance, emphasizing the interconnectedness of institutional roles and their cumulative effect on system stability.

MeSH terms

  • Computer Simulation
  • Financial Management
  • Game Theory*
  • Government
  • Humans
  • Models, Economic