Study On Private Financing Of Technological Medium-and-small-size Enterprises

With the development of knowledge economy’s globalization, technologicalsmall and medium enterprises (SME), with its own unique characters of innovation,rapid pace of new product roll-out and market orientation, have become thedevelopment mainstream of high-tech industries, and they play a strategic role in acountry’s technological capability and innovation capacity. However, the financingdifficulties have become the road barriers of the development of SME national wideand across the world. Many technological SME went bankruptcy due to the shortageof “timely” or”efficient” capital that is needed in daily operations. In the face ofhard-to-loan policy of state-owned monetary organizations, technological SME turnto private financing that features fast and short lead-time circulation so become theNo.1option for enterprises’ financing channel. However, private financing in ourcountry is not fully legal and there is no relevant policies have been enacted, socialcredit system、risk investment system, unsound in&out mechanism of privatefinancing lead to difficulties of private financing that created quite a whole lot ofsocial problems. How to take advantage and avoid disadvantage, leverage privatefinancing as a resource in technological SME to alleviate the financial problem ofenterprises, deviate from financing risk and secure the productive innovation ofenterprises is what this article aims at.This article, take the viewpoint at enterprises’ financing, dissects problemsexisting in the financing of technological SME, analyzes the positive and negativefunctions of private financing in terms of technological SME fund raising, exploresthe advantage and disadvantage of private financing for enterprises, by the way ofreferring to successful experience of foreign SME who used private financing andcombine the reality of our country, tentatively come up with the necessity ofcollaboration among enterprise, government and society, shy away from the negativefactors of private financing, government and relative departments enhance thesupervision so as to correctly guide and manage private fund, establish and improve the financing mechanism of technological SME, to enable them successfully raise thefund in turn to pave the way for their technical innovation and development.