Research On Financing Of Incubated Entrepreneur Businesses

Incubated entrepreneurs are a kind of high-tech and small & middle businesses which were incubated in incubators. Because of its characters of high risk, high yield rate and high asymmetry of information, financing problem has become a bottleneck to their further development. An attempt has been made in this paper to study the financing problem of incubated entrepreneurs. We mainly applied some theories of information economics about small & middle businesses financing problems to studying entrepreneur financing. Firstly, higher rate of successful incubation is critical to entrepreneur financing, so we have studied how to form the core competitive power of incubator with a target of successful incubating. Secondly, people with different private information about the success rate of entrepreneur will appraise entrepreneurial financing differently, which is also critical to this study. In this paper, an innovation network including all sorts of innovation resources such as technology, market management, fund and so on, has formed through screening, incubating and financing entrepreneurs. This will enable incubator to attain its core competitive power and to enhance the growth and success rate of entrepreneur businesses. Based on the higher success rate, we first discussed how to make entrepreneur financing through entrepreneur's network and relative information advantages by themselves. Then we analyzed how incubators indirectly help finance entrepreneurs after they had processed the information about entrepreneurship's qualities and their products. It is worth noticing that the above two networks about financing can be viewed as a part of the whole innovation network aiming to improve the growth and success rate, and they support and promote each other. We also analyzed how America and Israel governments respectively play their roles of"the visible hand"in the imperfect markets of entrepreneur financing. Besides, china's two well-known incubators, ShenZhen QingHua Academic Institution and QingHua TongFang, whose management patterns and successful experiences in entrepreneur financing were generalized respectively. Entrepreneur financing was studied in this paper for the first time. The study enriched and developed modern literatures on incubators whether from the perspective of research or from the research content (incubation process). A great innovation was smartly made in applying the concepts and methods of information economics to innovation networks of incubators. The innovation networks of incubators also embodied some thoughts of new institution economics. The theoretical models that have been constructed also have some innovations. Besides, for the first time, this article comprehensively applied sorts of financial innovations and methods to entrepreneur financing such as group-lending, cooperation-Guarantee, financing renting, venture capital, the science and technology Guarantee company, strategic alliances, technology and property right transactions and so on, so it is still an innovation. In brief, it is designed to improve the growth and success rate of the incubated enterprises, and to solve venture financing problem according to higher incubation rate and concerned information advantages.