Research On The Financing Of The Private Enterprise System Supply Problems

With the progress of China's further reform and opening up, privateenterprise has been playing more and more important role in promotingthe development of national economy. Its contribution is so notable that itconstitutes one of the major motive forces in pushing the reform ofmarket-oriented economy forward. The rapid development process is ofgreat significance to the national economic growth. However, privateenterprise has come across many difficulties on the way of development,financing difficulties of private enterprise are most serious. Therefore,resolving the problem of financing difficulties of private enterprise is thefocus factor in development national economy. The main purpose of this thesis is just making use of the reasonableconnotations and theoretical methods of the " new institutionaleconomics" to analyze institutional obstacles in financing difficulties ofprivate enterprise. The thesis attempts to point out the fact thatinsufficiently supply of institution is the focus factor of financialdifficulties in private enterprise. This thesis is developed around thefollowing issues: Partâ… . The thesis gives the accurate concept of private enterprise.Based on statistical data, the paper proves that private enterprise takegreat role in national economy. However, the financing problem, which isregarded as "a bottleneck", has become outstanding. Nowadays, thefinancing for the private does not match the development of privateeconomy and its contribution to the national economy. Partâ…¡. From two sides: sequence of finance and form of finance, thethesis describes the status of financial difficulties in private enterprise.The sequence of financing in private enterprise is inside financing â†'creditor's rights financing â†' stock financing. Private enterprise seriouslydepends on inside financing. Part â…¢. Insufficiently supply of institution directly leads tofinancing difficulties. Institutions include two forms: one is officialinstitution (such as sets or rules); the other is unofficial institution (suchas moral and ethical behavior of individuals). Therefore, the thesisanalyzes financing problem in private enterprise from the followingaspects: legal system of disclosure; stock market; the supporting policyfrom government; mortgage and bond clause; risk investment mechanism;credit system; the discrimination to private enterprise. Part â…£. According to the financing difficulties in private enterprise,the thesis put forward several institutional proposals: government shouldsupply private enterprise with satisfactory service, such as construction oflaw and code, advancement of transparency in financial transaction,reduction of information asymmetry, improvement Stock market. Privateenterprise also should establish scientific and effective internalinstitutions relating to corporate governance and control system. The innovations of the dissertation are as the following: (1). Based on the theory of the new institutional economics, itsystematically studies on financing difficulties in private enterprise. Thethesis puts forward such opinion that Insufficiently supply of institution isthe most important factor leading to the financing status of privateenterprise. (2). Official institution and unofficial institution play different role onfinancing of private enterprise. The two forms of institution are sameimportant. Therefore, developing unofficial institution is also necessary. Ittakes long time to change old and unreasonable unofficial institution.