Entrepreneurs In The Private Corporate Finance

Since reform and open to outside world late 80's last century, the economic situation of our country has changed greatly. On one side, state-owned enterprises' contribution to GDP has declined, on the other side, private enterprises have played an important role increasingly in our economy. As a result, the latter makes up the former in many ways such as employment, national output and tax income etc. However, private enterprises have suffered discrimination in many aspects, which have done great harm to the development of these enterprises and make the institutions of them deviate from standardization.The super-restrictive- financing restrain to private industries is not only one of discriminations, but the result of discriminations, which is the research achievement of this thesis. In a scientific and effective financing system, after considering all kinds of restrains to financing, enterprise can do find a kind of financing structure that maximize vendibility of them, this can be supported strongly not only in theory but in practice. However, private enterprises in our country defy it, because they don't free themselves from financing dilemma and have no dependent financing power, let alone reach an optimal financing structure. But this is only a kind of skin-deep phenomenon, the essential causes lie in many ways: such as institution shortcomings of enterprise and factitious system discriminations, influence of market malfunction and affect of government malfunction. Therefore, the fundamental way to relief super restrictive restrains lies in the cooperation between enterprise, financial institution and government. That is to say, private enterprise should establish scientific and effective institutions, and bring down risk and crease credit. Financial institution should strengthen asset and debt management, set up science risk assessment system, strengthen financial innovation and disperse loan risk. Government should supply enterprise with satisfactory service, such as construction of law and code, advancement of transparency in financial transaction, reduction of information asymmetry, normalization of financial transaction and improvement of exchangeable efficiency.