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Started from the first half year of 2000, US internet and high-tech stocks’ bubble began to burst, and the relative impacts overwhelmed the whole world. NASDAQ had dropped to 1,387.06 points on September 21, 2001 from the historical highest points 5,132.52 on March 10, 2000. Since the bubble had busted, the index was dropped 73% and it also destroyed the myths toward the high growth and high profit of internet or high-tech companies. Also, the losses from investors crushed the whole economic system causing low consumption and overproduction which were more severe on the internet and high-tech companies back then.
This research are mainly discussing the major impacts of SMEs after the bubble had busted, the government’s strategies for helping banks grant the loans to SMEs through SME Credit Fund, the contract breach of SMEs while encountering major financial crisis, and the compensatory system of SME Credit Fund in hopes to provide appropriate advices to SMEs, banks and SME Credit Fund, and create the next economic strength for our country.
Our economy is export-oriented and majorly on electronic related products which have wide and deep influences on our economic development. According to the statistics from DGBAS, the rarely negative economic growth of -1.65% appeared in 2001, and the unemployment rate has risen to 5.17% in 2002 from 4.57% in 2001 and 2.99% in 2000 which indicated the difficulties of the export-oriented SMEs during the times. The ratio of overdue loans from the SME Credit Fund was 4.92% in 2000 and then reached 7.25% in 2001 also proved the extreme impact on Taiwan’s SMES, banks, the whole economy and the unemployment rate resulting from this financial crisis.
In last, there are two major conclusions in this thesis which are the high ratio of overdue loan from SMEs in 2000 has created serious damage to Taiwan’s banks, and the compensatory of SME Credit Fund helped sustain the amount of compensatory however, the banks undertook most bad debt losses from SMEs.
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