A Research On The Financing System Of Chinese Private Enterprises

Only with 20-plus years, Chinese Private Enterprises (CPE) have developed from unknown economic force to a considerable one. But the difficulty in financing is still the key factor that hinders the further development of CPE.First, the paper analyzes the current development and financing situation of CPE. It points out that the value CPE have created does not accord with the capital resources CPE should have acquired, although CPE are playing more and more important role. For the lack of a sufficient capital support in both direct financing and indirect financing, CPE mainly rely on internal financing. Furthermore, from the point of view of the economics and the institutional economics, the paper deals with an in-depth analysis on the financing difficulty in CPE.Secondly, based on the surveyed data, the paper conducts an in-depth analysis on the current financing situation of private enterprises of Zhejiang Province and concludes the main financing characteristics of private enterprises of Zhejiang Province. A detailed comparison between the current financing situation of private enterprises of Zhejiang Province and practices to solve the difficulty of middle-sized and small-sized enterprises in financing in foreign countries has disclosed the sameness and gap among them. Though drawing both advantages, it puts forward the construction of a proper financing system for CPE, according to its current financing characteristics.Finally, the paper discusses on the structure of financing system of CPE according to the national current situation from the following aspects: promotion of financing market, promotion of capital market, improvement of the system of credit security, improvement of the governmental aides and supports and enhancement of CPE's own quality building.