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Analysis of the Influence of the Bankruptcy of Silicon Valley Bank on the Scientific and Technological Innovation Enterprises
- 1 The University of Hong Kong
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Abstract
As a pivotal institution serving technology innovation enterprises over the long term, Silicon Valley Bank boasts a broad spectrum of business scopes and stands as a crucial financing conduit for both technology firms and professionals. Following the bankruptcy declaration of Silicon Valley Bank due to losses incurred from divesting its bond investments, this seismic event in the financial sector is poised to trigger market turbulence and exert significant pressure on technology companies. Clarifying the repercussions of this event on the market and technology firms can foster market stability and the robust development of enterprises. Consequently, this study focuses on the bankruptcy of Silicon Valley Bank as the research subject, delves into its impact on the business models of small and medium-sized enterprises (SMEs), and suggests corresponding remedies. Firstly, through a thorough examination of the causes behind Silicon Valley Bank's bankruptcy, its deficiencies in risk management and financial services are brought to light. Secondly, by scrutinizing the business models of SMEs, issues pertaining to financing, risk mitigation, and business expansion are identified. Building on this foundation, solutions grounded in financial technology are proposed, leveraging technologies such as big data and artificial intelligence to bolster the risk management capabilities of SMEs, optimize financing structures, and enhance operational efficiency. The conclusions and findings of this study offer valuable insights and guidance for enterprises to navigate external risks effectively and safeguard the healthy development of the market.
Keywords
Silicon Valley bank, financial technology, business model
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Cite this article
Li,C. (2024). Analysis of the Influence of the Bankruptcy of Silicon Valley Bank on the Scientific and Technological Innovation Enterprises. Journal of Applied Economics and Policy Studies,5,84-88.
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Journal：Journal of Applied Economics and Policy Studies
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