Study On Chinese Private Enterprises Finance

Private enterprises have developed rapidly in recent years.They have made great contributions to the development of Chinese economy.But compared with state-owned enterprises,private enterprises have less sources of finance and face many financial difficulties.Lack of fund becomes a brake on their development.It also has impact on Chinese economic stability. Therefore,to research on private enterprises finance is practical demand.First,I anaylze private enterprises' different sources of finance from the view of cost and risk.Then I use a questionare to survey private enterprises lending and anaylze the reason which cause difficulty in private enterprises finance. At last,I give some suggestions to our government banks and private enterprises.The research shows : Bank loan is a better choice for private enterprises than other sources of finance.But private enterprises having low credit rating leads to great risk to banks .Because banks cannot make risk less and be shifted,they are not willing to lend money to private enterprises. To change the bad situation, private enterprises should make some efforts to improve their credit rating.Meanwhile,goverment and banks should also make some efforts to support private enterprises.