Research On The New Venture's Financing Process Based On Resource Viewpoint

With the advent of China's economic transition and the significant increase in the unemployment rate caused by global financial crisis, entrepreneurship,entrepreneurial activity's significance vis-à-vis the national economy increasingly apparent,thus, entrepreneurial activity in China has advanced by leaps and bounds. Judging from aggregate investment, the total investment of China's venture capital market Outbreak in 2007. The total amount of investment reached 3247 million U.S. dollars, 82.7 percent higher than which in 2006, increased by astonishing,and the number of investment cases increased to 440 from the previous year's 324, its growth rate was 35.8%. China's venture capital market has entered a rapid growth phase after a temporary drop in 2005, the number of venture capital investment nearly doubled in just two years , total investment increased by 176.8%. Many people of insight in the academic have also shown increasing interest in entrepreneurship study, entrepreneurship in China is far lagging behind the development of business practice compared to developed countries,and it is very difficult for study abroad to guide China's business practices. This is because China is in transition, China's entrepreneurs are faced with a lot of special issues for complex economic environment.Therefore,theoretical study on the entrepreneurship should be strengthened and it must be closely combined with China's business environment to highlight research's Chinese characteristics.This paper holds that,entrepreneurship can not be separated from deep study of entrepreneurial process in addition to taking business environment. Based on this starting point,we re-examined one of the important elements of entrepreneurial process in this paper ——entrepreneurial resources.We found that the financing problem is one of the main factors that hinders the development of start-ups,it is great important to solve it. Chinese start-ups face of capital financing and debt capital financing gaps in general,and special to face discrimination in the ownership,corporate management structure and social credit shows very imperfect and more profound impact.The whole process is accompanied by the development of venture capital from business start-up to the final harvest,entrepreneurs need to effectively identify a variety of venture capital,and to organize and integrate corporate venture capital with actively internal and external strength to achieve enterprise's core competitiveness, promote entrepreneurship growth. Therefore, this article believes that the development of venture capital is a new perspective to interpretate entrepreneurial process, with that perspective, this article attempts to develop venture capital the core clues.Venture capital resources are part of entrepreneural resources, the study of the development of venture capital must rely on the development of entrepreneural resources.So this article detailed resource identification, resource acquisition, resource allocation and resource leverage starting form the comparative maturation of foreign scholars. Resource identification refers to a process that entrepreneurs analyse and confirm the resources required for enterprise business in accordance with their endowment of resources, and ultimately determine the resources required to business. To achieve the established strategy, the necessary resources need to be clear for the realization of the need to identify the necessary resources, because the resources have an important impact on entrepreneurs'behavior. Entrepreneurs need to know existing resources in "resource library",that is entrepreneurs need to know their own resource endowments, as well as resources owned by the original enterprise. Resource acquisition means to make use of other resources or ways to acquire necessary resources and use them on the basis of confirming and identifying resources. Attracting resources to a start-up enterprises is the biggest challenge entrepreneurs face. For most start-ups, the initial resource endowment is not complete and entrepreneurs need to obtain the confidence of suppliers in order to obtain the required resources. They can display the success image through some means ,such as the perfect business plan and good facilities,in order to encourage suppliers to invest the enterprises. In this way, leveraging other resources such as social network resources through a resource such as financial resources, thus they have been absorbed and used by enterprises. If the enterprise has a wide range of social resources, such resources will be able to bring tangible and intangible benefits for the enterprise, including opportunities for cooperation, trust, financial resources, as well as lower cost of procurement of equipment. The entrepreneur's reputation, ability, behavior and other human resources and social resources is a decisive factor to attract potential partners. Resource allocation is a process that once acquiring the necessary resources enterprises adjust resources so that they match each other, complement each other so the enterprises acquire unique competitiveness. The enterprise Resource are piecemeal, without a systematic before the integration, to play the greatest value of these resources, resulting in the most cost-effective, we must use scientific methods to make resources of various types comprehensive, integrated and active, re-construct them, and integrate valuable resources together organically, so that they are more flexible, structured, systematic and valuable. Only access to the place the resources are properly and effectively targeted to the resources'value are reflected, that is, to various types of resources, so that they match each other and they are complementary and mutually reinforcing. Resource leverage is a process that use resources acquired and matched,form a certain capacity in the market, produce products or services by using resources and capabilities to create value for the customer. Business'goal is to survive, the value of entrepreneurial activity is the creation of wealth. Therefore, after the identification, acquisition, and allocation of resources, the new capacity or competitive advantage will form, enterprises must take advantage of that to gain market . This involves both coordination and development of resources. The paper presents models of funding development process in the creation stage and in the early stages of growth of new enterprises .It elaborate the problems at different stages,different countries in different economic phase has different laws of entrepreneurial activity. Therefore, the analysis also consider the influence of entrepreneurial network and entrepreneurial environment to the two stage. Finally, by analyzing the Wuhan sharp beam Biotechnology Group Limited and the Daliang Group's financial development process, we found that the two company's financial characteristics in the process are more in line with earlier theoretical analysis.