Researches On Finanicng Issues Of Privately Owned Enterprises In China

Having developed for 20 years, privately owned enterprises in China grow out of nothing and experienced a course from small to large, from weak to strong. As a component of socialist market-oriented economy, privately owned enterprises become an important force for driving the social economy to develop stably and sustainedly. However, difficulty in financing encountered by privately owned enterprises hinders the development badly. By making an analysis on causes of the financing difficulties of private owned enterprises, the thesis makes suggestions for dealing with the situation.The thesis elucidates the important status and roles of privately owned enterprises, as well as the significance of developing privately owned enterprises under current circumstances. The author believes that difficulty in financing is the major obstacle hindering the development of privately owned enterprises.The thesis makes an analysis on current situation and characteristics of financing in privately owned enterprises. The author tries to make a conclusion on both internal and external causes that resulting in difficulty of financing in privately owned enterprises. Unsound management structure, un-effective operation, insufficient funds, unreasonably high asset-debt ratio, high level financing risk, low credit standing, inefficient internal control and un-normal financing management are considered to be internal causes. On the other hand, systematic discrimination, imperfect legislation, lagging legal protection, lacking of financial support from the government, financial policy discrimination, unreasonable structure of financial organizations, under-developed capital market and credit guaranty system are believed to be external causes.Finally, the author makes the following suggestions from the aspects of privately owned enterprises, governmental agencies and financial institutions to deal with the current situation: the enterprises should strength self-development and increase financing ability internally, the government regulatory agencies should offer sufficient support by creating a favorable external environment, the financial institutions should be creative in operation and improve the service quality.