Rural Micro-Enterprise Startup: Research On The Demand And Supply Of Venture Capital

Encourage and promote farmers to start a business is considered to be one of the effective measurements, and set up micro enterprises in rural areas is an excellent business model for farmers. Financing supply is the most important factors in rural micro-enterprise venture and growth. There are many researches on medium and small enterprises financing, but rare studies are on the rural micro-enterprise venture and financing. Therefore, the research of rural micro-enterprise business has positive practical significance on encourage farmers to start businesses, increase income and solve problems of rural surplus labor.Financing demand character, financing supply channels, financing supply effectiveness, financing supply unbalance of micro enterprise were studied under the guidance of modern enterprise financing theory and financial intermediary, and based on the demands of rural micro-enterprise financing and supply investigation. Countermeasures on improving statues of rural micro-enterprise venture and financing were suggested. Main results were as fellows:(1) Financing demanding character of micro-enterprise. In part three, based on modern enterprise financing theory and questionnaire analysis, financing demand character of rural micro-enterprise were concluded as follows:high dependence of enterprises financial needs, low financing demand of formal finance, financing loan demand with the characteristic of diversity and seasonality, insufficient government funds support efforts.(2) Financing channel of micro-enterprise. In part four, two types of financing channel of micro-enterprise were concluded. They are internal financing and external financing. Internal financing include private capital accumulation and loan from relatives. External financing includes private capital loan, rural fund mutual cooperative and rural credit cooperatives. Venture financing channel are affected by the business risks of rural production-oriented enterprises, scale of production and business credit, which leads to an external financing barrier.(3) The effectiveness analysis of venture financing supply in miniature enterprise.In the fifth part of this paper, the demonstration analysis on factors as financing costs related to the financing efficiency utilization of funds, financing mechanisms regulating degrees, solvency and financing risk. From the combination of theory with practice at Enterprise venture financing take into account financing cost,fund utilization rate, financing mechanisms regulating degrees and solvency etc, for the rural miniature enterprise loan demand have the texture of "small, urgency, frequent", That is non-formal finance much more efficiency than informal finance.(4) The imbalance analysis of supply and demand in miniature venture financing.The sixth part of this paper, according to the above analysis and the questionnaire survey, the imbalance of supply and demand in our country rural miniature enterprise financing is mainly manifested the credit discrimination at the formal financial institutions. Profound reason of credit discrimination is lack of good system arrangement and legal protection. In addition, the unbalanced supply and demand in miniature venture financing reflected in informational asymmetries, folk capital financing poorly own barriers of miniature enterprise and so on.Four conclusions were obtained:(1) Internal finance is the main channel of venture financing channel; (2) Non-formal finance financing is the main form of external financing; (3) Credit discrimination is the main barrier of venture financing; (4) The government have large action space in fiscal and financial support.Based on the analysis of rural micro-enterprise financial supply crisis and its incentive, suggestions were provided as fellows:(1) Government function:perfect and disparate financial system. (2) Financial institutions:increase financial service innovation. (3) Enterprise:Enhance financing credit consciousness.