On How The Venture Capital Funds Facilitates The Local Economic Development-Suggestion For Shifang

With the development of the reform, the national economy has leapt forward, and the small and medium sized private enterprises have played the most important role in the economic structure, taking an impregnable position in tax, employment, export and so on.With accelerating of the market economy and globalization of the trade, the small and medium private enterprises have to face the problems of the high technology cost, the difficulty in financing and so on. At the same time, basing on high density manufacturing and processing, the domestic SME becomes easily to be replaced by new developing country and the living space shrink smaller and smaller, as the adaptor of the end of the industry chain.Consequently, the change of developing mode becomes the common understanding from a central to a regional government as well as from state-owned enterprises to private enterprise. During the transformative course, we should not only study advanced management and business conception, but also focus on changing the awkward position which taken by all walks of life in our country, Noticing the great balance from the basement of scale economy to the high or new technology to realize the value of recent products.Hence, trying to become the hi-tech SME and realizing the industry-leading profits, now focused by almost every SME. However, the transformative course fraught with uncertainty, including future cash flow into, research cost and the applicability of achievement, which lead the project of researching the hi-tech to become the high risk action and freeze almost every such enterprise's step. The most crucial point is the research enterprise is refused entrance to financing. They have to bear the great pressure on fund, and be refused to financing. Under the new situation, the small and medium private enterprises become more difficulty in switching.Actually, the difficulty in financing faced by the small and medium private enterprises in our country, the same to the developed country. Recently, the mature way is in the form of the venture capital funds to support. The prevalence of commercial profits pursuit, the high investment and high risk pay back the high profits always take up one position in financial market, and the wider you put into, the higher profits you would be made. Through the history of the development of the venture capital funds in developed countries like USA figure out that, the enterprise supported by venture capital funds would putmore into the research than the common one, to drive the level of the whole research and supporting the US economy to develop rapidly in the 1990s.In our country, the form of renovation of economy which is characterized by Suzhou Industry Garden, relies on manufacturing economy and mainly supported by the government put into venture capital funds strikes root in the hearts of the people, and sufficient encourages the whole country in putting into the venturecapital funds to drive the development of economy.Therefore, a plan related to the features of industry and the development concepts in Shifang which can guide the venture investment fund must be the blueprint to let Shifang get out of a morass and realize the new development.