Study On Effects Of Venture Capital On Economy Growth In China

It has been over60years since venture capital started and the academics has neverstopped researching on how does venture capital boost economy. Nowadays it has becomethe important research issue among economy filed. Comparing with international venturecapital, China started later and has its unique features, especially the definition of venturecapital different from Western. Based on this, this paper compares China’s venture capitalwith America, also serving as an example, refers to the authority definition andsummarizes the features of venture capital in China. It is also an important issue whetherthe development of technology, labor, capital accumulation, which are also importantfactors to influence economy in economy development theory, could serve as efficientways to boost economy. After the research of America mode, empirical test of influence ofventure capital to economy promotion, summary and research on a regional venture capitalcompany, this paper concludes that venture capital have some positive effect to boosteconomy. And this effect is realized by influencing Hi-tech, promoting employment rateand influencing income and this accord with the economy development theory.Comparing the venture capital’s developing status between China and America, thispaper puts up some questions existing: macro-environment problem, singleness of venturesubject, small capital quantity, weakness in control ability, lack of professionals and exit.With regarding of the experience of America, this paper well-direct proposes some usefulsuggestions to the development of China’s venture capital: complete mulit-layered capitalmarket, expand the channel of pooling venture capital, make full use of government, makeand perform kinds of promotion policy, reinforce the support of law, strengthen regulatingability, optimize the social resources required by venture capital, train professionals forventure capital.