|Author Name||YAMORI Nobuyoshi (Faculty Fellow, RIETI) / HAMAGUCHI Nobuaki (Faculty Fellow, RIETI) / NODA Kentaro (Rikkyo University)|
|Creation Date/NO.||June 2019 19-J-037|
|Research Project||Stable Development of Regional Economies under a Declining Population|
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This paper uses the "Business Consciousness Survey on Business Continuity Plans (BCP)" (conducted in October 2018) and presents the current status and issues regarding support programs offered by financial institutions to encourage SMEs to formulate BCPs. According to the survey results, smaller companies, companies with lower capital ratios, and companies with lower profitability are more concerned about their financial situations in the aftermath of natural disasters. Under the SME Strengthening Act (submitted to the Diet in February 2019), financial institutions are expected to support the development of BCPs for SMEs. However, in fact, financial institutions have not been proactive about providing support to SMEs to formulate BCPs. Furthermore, there is insufficient communication between financial institutions and companies in terms of risk management. Finally, the weakness of financial incentives (e.g., lower interest rates or public credit guarantor fees) is not a significant reason for SMEs not to formulate BCPs.