Studies On Financing Plight Faced By Private Enterprises

Nowadays the great pressure of population and increasingly serious problem of "agriculture, rural areas and farmers" are in need of jobs in China. The historical practice of countries around the world shows that the private enterprises are the strong power to promote the increasing of economy and the important way of supplying jobs. But private enterprises in China face difficulties in the process of development. The difficulty in financing is a key factor. Economic practice over many years demonstrates that only when financing problem of private enterprises is solved, can we offer massive surplus rural workers jobs, accelerate structural adjustment of economy in our country, promote the upgrading of technology, advance the new industrialization and assure the sound and fast development of national economy. In recent years, the problem of financing on Private enterprises, especially the problem of financing on private small and medium-sized enterprises(private SMEs), has been a hot topic. However, the problem has not been resolved until now.The development of private enterprises can affect the sound and fast development of economy directly. On the basis of the open economy, financing plight faced by private enterprises has reflected prominently the flaw exposed during the economic development. Therefore, the paper has certain theoretical significance for the development of regional economy and theoretical innovation of finance; the study has very important realistic significance for establishing and improving financing system of private enterprises, balancing allocation of social capital and forming new growth areas in economy with proceeding from reality as well as a focus on ownership reform and system innovation.Through this thesis, not only can we explore the financing law for private enterprises theoretically to improve the relevant economic theories, but also raise countermeasures to solve the financing difficulties in private enterprises. The research results will have certain social and economic efficiency.Based on former studies , following the principle "raise problems, analyze problems and solve problems" and from inside to outside , shallowly to deep, the thesis respects and regards the fact as well as learns from others' thought to bring forward our own idea . It also uses synthetically the method including financial economics, game theory, higher mathematics, management science and so on: with the combination of system analysis and comparative analysis, it studies the internal financing plight and external financing plight , and pointes out their influence on financing in order to establish the model of financing for private enterprises; it adopts the method combined with empirical method , normative method , normative theoretical analysis and explicit statistical data and pays great attention to a combination of the financing theory and practice; it combines the qualitative analysis and quantitative analysis; it collects abundant data information and makes many graphs and charts to demonstrate obviously as well as directly and have the strong persuasion.The paper learns from relative theories of financing for enterprises, analyses the current situation of financing. It concludes that the internal financing plight includes demand plight, tool plight, channel plight, supervising plight, strategy plight and external one composes of credit plight, law plight, the plight of credit assurance system, the plight of governmental support.This article finds that to solve the financing problem of private enterprises, we should adopt diversified financing strategy combined with the current situation. Besides, we should try simulation management of a third party logistic, focus on the core business while handing relevant service link such as transport, storage over to the more special logistic enterprises , and change "fixed fund" to "circulating fund" through financing stock capital and reducing the occupation rate of fund; the private enterprises should cultivate their own financing culture which is different from others, and avoid the condition to spread continuously which is "the top is heavy while base is weak" and lacking of the financing culture. The private enterprises should run financial leasing business with developing advantage and accurate positioning; they should accelerate business innovation, reduce credit risk and improve profit margin; they should expand financing channels, strengthen capital power, unify administrative departments, improve industry management and make supporting policy. Small and medium-sized financial institutions should be vigorously developed as the special banks serving for SMEs; the private banks should be allowed to be set up or re-organized, which are invested, controlled and operated by private capital. Banking industry should upgrade service level with cohesion of the core competitiveness, speed up the scientific and technological innovation, found loan guarantee organizations for private enterprises to push ahead with privately economic development, intensify comprehensive supervision and set up a commercialized bank system which has the clearly established ownership and the reasonable structure of management and control for companies. The government should set up venture capital market for private enterprises to promote risk investment, guide SMEs to put in practice listing financing and introduce "angel investment".This article's innovation lies in the following: firstly, using theories related to economics of information in order to elaborate agency cost problem which was caused by the asymmetric information between banks and enterprises; secondly, setting up an analysis frame of financing problem of private enterprises, which is MARCH-FLOW Model; thirdly, introducing Fractal Theory to the studies on credit guarantee system; finally, combining golden dividing ratio with various stages of life cycle of enterprises to explain the financing order line.