| China is first country that produced and drank tea in the world. Tea in China has had commercial features for thousands of years, and the tea industry is an old and everlasting industry in China. With the development of global economy and liberal trade, tea has gradually become a world drink. Tea production and trade is booming in the world, which leads to the rise of its price and its broad marketing prospects. There are both opportunities and severe challenges for Chinese to develop the tea industry. Most tea enterprises are small and medium-sized, weak in production technology and management. What is worse, the tea for export is more demanding. That is, the exportable tea has to meet more essential requirements. And it is getting more difficult for the tea enterprise to raise funds. Acting as the means of the tea industry, the tea enterprise is an industrialized organization. Working out solution to the problem of raising funds for the tea enterprise can not only increase its profits effectively, but also optimize the tea industrial structure and raise its industrialized level. As a result, the tea industry will become more competitive. As the tea industry has its own characteristics, the study on the characteristics will help explore adequate developmental rules for the tea industry and learn good experiences from other agricultural industries. The problems such as high risk of giving loan to the tea industry and the difficulty of its raising funds are caused by the following factors. Firstly, the tea industry is greatly influenced by natural conditions. It takes a long period for the tea industry to refund loan, and it lacks of diversified and effective guarantees. Besides, financial enterprises/companies can not ensure the credit funds to be used properly and effectively. Additionally, tea enterprises are of different sizes. Tea is mainly produced in the countryside, which to some extent decides its need for funds in the production area. There exist a lot of problems in the rural finance system in China. For example, the state-owned commercial bank consolidates small ones at the grass-roots level; the agricultural development bank cut the business of supporting agriculture without regard to the policy; the credit agency in the countryside lacks high quality property and shifts from its agricultural business to non-agricultural one, the trend of which is becoming bad to worse. In a word, the tea industry has great difficulty in raising funds, which directly restricts the development of tea enterprises. On the basis of the industrial characteristics and the financial background, it has both theoretical and practical significance to probe into the influential factors of tea enterprises'raising funds in the countryside. The reform of tea economic system will benefit a lot from the research in improving tea production technology and efficiency and strengthening the competitiveness of tea enterprises. The research roots in the actualities of the tea industry and analyzes the influential factors of tea enterprises'raising funds. Therefore, the research project is new and of great importance.The study roots in the development of tea industry, focuses on the tea industrial characteristics and the influential factors of raising funds, bases on the statistics collected from a large variety of tea enterprises, follows the creative financial theory and the basic financing theory. Several research methods are applied in the research: investigation, comparative analysis, multivariate regression analysis, case analysis, questionnaire and semi-structured interview etc. The study aims to set up a model for multivariate regression analysis of the influential factors in the tea industry financing, to probe into the causes of the influential factors and the selection of financing ways by means of utilization of all the statistics collected.The paper is divided into five parts. Chapter one introduces the framework of the research paper, including research background, literature review, research purpose, the research problems to be solved and methodology. Chapter two sums up the enterprise financing theory, summarizes the research findings about the characteristics and the tendency of the tea industry financing. Hence, the enterprise financing theory forms the theoretical foundation of the tea industry financing. Chapter three analyzes and states the features and their manifestations of the tea industry in Fujian, and illustrates the favorable influence of the tea industry chain on the tea enterprise financing. Chapter four and five focuses on the theoretical analysis of the tea enterprise financing condition and the influential factors, launches a case study on the influential factors of the tea industry financing in Fujian. Chapter six, seven and eight explains the selection of financing ways for the tea industry, puts forward effective and practical ways of financing, concludes findings and states problems to be discussed further. Findings:(1) From the viewpoint of the commercial bank and other financial agency, before loans are granted to the tea enterprise, the actualities of the tea enterpriser and the staff need to be examined in order to assess its competitiveness and the development potential The characteristics of the tea industry and its chain may affect the correct judgment of its development prospects, which makes it more difficult for the tea enterprise to get the loan.(2) The analysis of the tea enterprise financing condition and the theoretical analysis of the influential factors indicates that the following factors affect tea enterprise financing. The influential factors are as follows: the enterprise conditions such as the size, staff population, establishment time, enterprise type, enterprise credit record; the enterpriser's personal conditions including his age, educational background, and his managerial experience in the tea industry; the tea product conditions including its type, its popularity, its brand, its raw material, its packing, its marketing channel and so on; the use of loan, the way of loan, the origin of loan and the relationship between the bank and the tea enterprise; risk factors of the tea industry and the location of the tea enterprise and so on.(3) To recognize the significant factors that affect the tea enterprise financing ability, a multivariate linearity regression model is set up to process the data collected from 188 tea enterprises in Fujian Province in 2008 by means of questionnaire and interview. When the credibility is above 99%, the factors that affect significantly the tea enterprise financing ability involve the type (including production enterprise and sales enterprise), the credit rank, the enterpriser's managerial experience, the loan invested in the fixed assets, the mortgage loan, natural risk and so on. When the credibility is above 95%, the factors that affect significantly the tea enterprise financing ability involve staff population, the enterpriser's age, market risk and recommendation of an acquaintance. When the credibility is above 90%, the tea enterpriser's educational background affects its financing ability significantly.(4) The specific ways to promote the tea industry financing ability are: to establish reasonable investment and financing systems for the tea industry; to perfect the credit system of tea enterprises; to further enhance the financial investment so as to construct the public service platform for the development of the tea industry; to construct the necessary policy system to improve the tea industry's financing ability.
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