The Real Diagnosis Research Of Endogenetic Folk Finances Which Support The Private Enterprises In Yuncheng Shandong Province

The difficulty of private enterprises in financing has become the "bottle neck" of its development. Chinese private economy has increasingly become the major driving force for economic growth. However, the "financial restraint" long-term existing in our country causes the state-owned commercial bank "credit squeeze" to the private enterprises. On the other hand, the government has emphasized the financial reform, especially in the third national finance conference proposing to speed up the rural finance reform, perfect rural finance system and construct the multi-level finance market system, which is advantageous to promote the support of folk finance to the private enterprise financing. Therefore, the development of folk finance is the effective solution of private enterprise finance problem.Financial endogenous growth theory suggests that the real motivation of financial growth is based on the endogenous mechanism. The Endogenous state of finance growth is gradually formed in the economical development. It fits well with the elements of the economy and has the advantage in market operation, spontaneous incentive, mutual financing and so on. The private enterprises as an endogenous micro-financial body, is born with the market rules for financial operation and clear property rights to avoid the administrative intervention and the transforming financial abuses. Endogenous financing mechanisms will not damage the valuable financing base for private economy and will continue to play a role in promoting the development of the private economy on account of the self-selection mechanism, innovative functions, Private but mutual information and discrimination on ownership of informal finance. However the informal finance has not been acknowledged by the states, which is in the pessimistic region, therefore it is a valuable proposition that how to regulate informal finance to better serve the non state-owned economy and promote the social economic development.This article firstly outlines the present situation of private enterprises, the status as well as the function in national economy from the macro perspective. On this basis, it concludes that the privately operated enterprise become the engine of economic development. Secondly, it points out the serious shortage of formal financial support for privately operated enterprises on the one hand and the endogenous private financial has become the main financing channel of privately operated enterprises on the other hand; Thirdly, based on the transaction costs and asymmetric information theory of new institutional economics, it analyzes the cause of endogenous private, finance' support to private enterprises. Finally, through the survey conducted in Yuncheng on the financial support to private enterprises and the financing state of private enterprises in Yuncheng Shandong Province, it concludes that the informal finance is the main financing way of private enterprises. Thus it put forwards the proposals for promoting Endogenous informal support to private enterprises in Yuncheng Shandong Province.