The Approaches To The Sunny Non-governmental Financing In Wenzhou

Wenzhou Economy, called the puppy economy, is mainly made up of small and medium enterprises and individual operations. Due to some aspects of our financial system, formal financial agencies can hardly satisfy the financing needs of those small and medium enterprises. Under the circumstances, most of the small and medium enterprises begin to seek other financing channels, of which non-governmental financing gradually has become the main pattern for these enterprises. With the inevitability and rationality of its coming into being and development, this pattern has its own characteristics. Since the reform and opening-up, Wenzhou, which hasn’t enjoyed too much national investment and supportive policy, develops mainly on its independent development and inner drive. Non-governmental financing, as the helpful supplement for the formal financing resources, plays an essential part in its development.Recent years, with the increasingly active non-governmental financing behavior in Wenzhou, there exist some unconquerable shortcomings in it. For example, it is hard for government to supervise; it is easy to be ill used by some law breakers; and it has a weaker risk-resisting ability. In the current non-governmental financing process, the external system circulation phenomenon of funds tends to be more and more serious, for example illegal private banks, bonding companies, pawning houses, investment corporations etc. are everywhere. And these agencies act as underground banks in secret, and the funds scale is becoming larger and larger. The long existence of underground finance will surely influence the normal economic and financial order, which can always be the reasons why government supervises and bans the non-governmental financing. This article, through the non-governmental financing development, characteristics and main channels, tries to analyze the existing risks in the financing process, bring forth the more formal non-governmental financing, push it on the sunny developing road and urge it to play a more important part in the social transformation period in Wenzhou.This article is divided into six parts:the first part is to introduce the research background and significance, relevant document review, research approaches and thoughts; the second part mainly discusses the connotation and emergence of non-governmental financing; the third part is the financing analysis of the small and medium enterprises in Wenzhou; the fourth part is about the supportive function of non-governmental financing for the economic development in Wenzhou; the fifth part mainly talks about the problems which need to be solved in the process of non-governmental financing in Wenzhou; the sixth part explores the approaches to the sunny non-governmental financing in Wenzhou.Due to the fact that the research of non-governmental financing is an enormous project, it is hard to be considerate and thorough in this article. In the meantime, because of the secretiveness and lack of standard of non-governmental financing, the statistics is not thorough enough. This article is based on certain investigation, practical experience and theory, summarize the problems in the current non-governmental financing in Wenzhou, and put forward some suggestions which may help in the healthy development of non-governmental financing in Wenzhou.