An Empirical Analysis On The Role Of Private Finance For The Financing Of Small And Medium-sized Enterprises

After our country entered the market economy, the small and medium-sized enterprise to theeyepiece trend of rapid growth, the proportion of the number of SMEs in China’s domesticenterprises on a constant increase, today has reached more than95%, the contribution to nationaleconomy relative to the other is not only the quantity increase, there is a quality leap, the businesstax, the income scale, the scale of development, capital amount of freedom compared with thelarge enterprises are also much higher than the. The present data is20%,22%,21%more than thelarge state-owned enterprises, but also in China’s Shenzhen market exchange also has about morethan4000listed in the SME board, especially in the field of circulation, the proportion accountedfor92%. And this data is also grow with each passing day, with a large number of employmentopportunities for China’s surplus population, unemployment has fallen to70%, contribution. WithChina’s accession to the world trade organization, the foreign export opportunities greatlystrengthened, small and medium enterprises accounted for about61%. Rapid development ofChina’s economy has played an important role. But the small and medium-sized enterprise due totheir own conditions. It is difficult to obtain substantial financial support from formal financialchannels, the lack of funds has become the development of small and medium-sized enterprisespain.China’s large state-owned commercial banks management system, the examination andapproval of a loan need Cengcengbaguan, with complicated operation procedures, trying to get aloan from the bank is very difficult. Coupled with the small and medium-sized enterprisedevelopment time is not too long, scale is not large, it is difficult to provide a guaranty bank needsin economics, it displays the contradiction of supply and demand, the demand side is badly inneed of a large amount of money, and the supply side is not willing to give funds to the demandside. How to solve this problem has become the problem of priority among priorities, emerge asthe times require the folk finance to fill this gap. A large number of private capital into the smalland medium-sized enterprise. Holding a large amount of money the institution to pursue high profits, and not put money in the bank to earn meager interest, but by obtaining high interest to putmoney into the small and medium-sized enterprises, such folk financial institutions in this chainformed the capital supply side, the development of private finance for the development of smalland medium-sized the enterprise has the reality is very important.The survey found, be idle in folk capital, resources are not reasonable use, the empiricalanalysis of small and medium-sized enterprises in the inflow of funds into the scale has the realityis very important. If we can use well inside the folk finance funds, these funds flow to make anestimate and correct input to the small and medium-sized enterprises in financing for small andmedium-sized enterprises, small and medium enterprises will develop for a long time because ofcost reduction. This paper describes the current development of small and medium-sizedenterprises of our country and all its features, analyzes the causes of. The development of Chinesefolk financial sector assessment, through the analysis of model structure and simplifiedpreliminary estimate of private capital for small and medium-sized, finally summarized ourcountry government, small and medium-sized enterprises should be how to plan, guide people tothe correct financial inside of the funds for the development of small and medium-sizedenterprises, for me with the development of our national economy to a power of its own.