Research About Financing Of Private Enterprise Clusters Based On The Social Capital Theory

As we all know, small enterprises play an important role in reducing employment pressure and promoting regional economic growth. However, the financing of small enterprises has becoming increasingly difficult. Government, academia, the financial sector and other sectors of the community have tried best to address the financial problems of small enterprises, but the effect is unsatisfactory. At the time when small enterprises are faced with financial problems, the enterprise clusters show the unique financial advantage.Enterprises in cluster do frequent economic exchanges and informal social interaction because of their adjacent geographical location and the same cultural background, which gradually formed a network of relationships that is entrepreneur-centered or enterprise itself-centered, this network of relationships is enterprise’s social capital. As some other forms of capital, social capital can bring benefits to enterprise, and to some extent, replace or supplement other resources. The existence of social capital encourage enterprises to participate in the cluster, the network of relationships among enterprises in cluster will be more close and complex, the amount of social capital owned by enterprise will also be more abundant and stable. Enterprises in cluster have to maintain network of relationships and accumulate social capital for the need of development, which drive them to take cooperation when in the face of financing, marketing and other issues. For the private enterprises in cluster, maintenance of relationship network and accumulation of social capital are even more important, the reason is that small--sized private enterprises have no high quality assets to mortgage. In order to meet the financing needs, they may apply for loans through the form of mutual guarantee or borrow money from other enterprises, and that is the financing advantage of enterprises in cluster. It is difficult for single enterprise to built effective relationship network, the social capital is extremely limited compared to the one in cluster, and therefore doesn’t have the financing advantage.In this paper, we take the small--sized private enterprises in cluster as research object to analyze financing problems from the perspective of social capital. In the first two chapters, we review literature and introduce relational theory. Chapter3and4are main parts of the article, which analyzes the formation of enterprise’s social capital, discuss the effect on enterprise financing, and provide an empirical study. We survey200small--sized private enterprises in cluster in S region of Jiangsu Province, use the SPSS statistical software and measurement regression model to measure the social capital of small--sized private clusters on the basis of the factor analysis and regression analysis. And then we do empirical analysis on the correlation of social capital and the financing of small--sized private enterprises.The results show that social capital in a certain extent, can effectively promote the small--sized private enterprise financing and alleviate the difficulties in financing of small--sized private enterprise clusters. Specifically the following conclusions:(1) The social capital of small--sized private enterprise clusters is mainly affected by3factors such as the basic situation of enterprise owners, the influence of enterprise itself, as well as the level of cooperation between small--sized private enterprise clusters. Among them, the basic situation of individual entrepreneurs takes the largest load factor, which is an important part of social capital.(2) The clustering of small--sized private enterprise financing environment and social capital show positive correlation at the other variables remain unchanged.(3) The basic situation of individual entrepreneurs which takes the largest load factor has little impact on the financing environment. This indicates that the situation of enterprise itself takes greater importance in bank credit and private financing.Finally, based on the conclusions in this paper, we put forward proposal, summarize the inadequacies of the study, and prospect the future research.