Financing Problems And Solutions Of Domestic Private Enterprises

With China's rapid economic development, China's private enterprises have become an important component of the national economy. However, in the meantime of the rapid development of private enterprises, due to the shortcomings of itself and external environment and variety of factors, it has encountered many problems; the prominent problem is financing difficulties.To the financing issues of China's private enterprises, the paper from the State system, and private enterprises themselves to analysis the reason of the financing difficulty of private enterprises concretely. First, China's existing financial systems bound the financing of private enterprises: It causes"cherish the loan"to the private enterprises that the state-run commercial bank pursues the scale merit management aim of the loan; the implementation of the centralization of state power type management mode of state-run commercial bank has limited the loan to private enterprises. The banking system lacks innovation. Second, national macroscopically policies are not enough to support the financing of private enterprises, the existing direct financing channels are obstacle of private enterprises, and the social credit environment makes the folk capital difficult to be well used. In addition, it is one of the reasons of losing appeal of financing that the whole quality of private enterprises is not high.In order to solve the problem that the financing of private enterprises is difficult, we can use the successful experience of financing of foreign SMEs (small and medium-sized enterprises) for reference. By analyzing financing features, financing channels of foreign SMEs, the policy support of foreign government's for SMEs, the combination of China's private enterprises and the characteristics of China's financing environment, a few suggestions on solving the financing problem of China's private enterprises were made in this paper: First, we should speed up the corporate governance and construction of private enterprises, strengthen the scientific management, establish and perfect the corporate governance structure, strengthen the financial management, guarantee the authenticity and legality of accounting information; Secondly, the private enterprises can expand the direct financing channels, which would require the state's policy support, establish and improve a multi-level capital market; In addition, private companies would be able to broaden indirect financing channels, which requires state-owned commercial banks to increase service and lower threshold to private enterprises, and also needs the addition of multiform financial institutions of SMEs, which specialized services for private enterprises.In summary, solving the financing problem of private enterprises will enable the private economy to develop rapidly and healthily, which is also playing a promoting role in the development of China's national economy. The financing problem of private enterprises can be well solved by the concerted efforts of country, society and the private enterprises. Private enterprises will become an important driving force in China's economic development.