Small businesses are at the heart of most economies. Yet their combination of high risk and opacity with uncertain return dissuades banks and other investors from providing the necessary financial backing to get a business off the ground. Overcoming the significant asymmetries of information is simply not seen as worth the high transaction costs required. Technology—particularly digitalization and data analytics—has in recent years lowered the transaction costs of small business lending through automated systems capable of analyzing varied data sources indicative of the borrower’s solvency and stability. Ownership of this data by large service providers has, in this new market, tended to indicate a potential capture of small business borrowers by the lending firms with the largest networks. This paper sketches the parameters of an application for the ‘smart precision financing’ of small businesses, through an analysis of the legal and technological innovations that could be introduced to make such financing simpler while allowing the market to retain dynamism, thus increasing funding and funding options available to small businesses. The precision financing concept seeks to decrease information asymmetry and transaction costs while also limiting agency risk of a borrower misapplying funds. The recommendations offered are also designed to be complementary to eventual business growth toward venture capital investment.

中文翻译：

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小型企业融资的智能精准金融

小型企业是大多数经济体的核心。然而，它们的高风险和不透明性与不确定的回报相结合，阻碍了银行和其他投资者提供必要的财务支持来开展业务。克服重大的信息不对称根本不值得付出高昂的交易成本。近年来，技术——尤其是数字化和数据分析——通过能够分析表明借款人偿付能力和稳定性的各种数据源的自动化系统，降低了小企业贷款的交易成本。在这个新市场中，大型服务提供商对这些数据的所有权往往表明拥有最大网络的贷款公司可能会捕获小企业借款人。本文通过分析可以引入的法律和技术创新来简化此类融资，同时让市场保持活力，从而增加融资和融资，概述了小企业“智能精准融资”应用程序的参数。可供小型企业使用的选项。精准融资概念旨在减少信息不对称和交易成本，同时限制借款人滥用资金的代理风险。所提供的建议还旨在作为对风险资本投资的最终业务增长的补充。从而增加小企业可用的资金和资金选择。精准融资概念旨在减少信息不对称和交易成本，同时限制借款人滥用资金的代理风险。所提供的建议还旨在作为对风险资本投资的最终业务增长的补充。从而增加小企业可用的资金和资金选择。精准融资概念旨在减少信息不对称和交易成本，同时限制借款人滥用资金的代理风险。所提供的建议还旨在作为对风险资本投资的最终业务增长的补充。