The Research On The Growth Ability Of Middle And Small-Sized Enterprises In The Case Of Venture Capital

Small and medium-sized enterprises play a key role in promoting national economy.How to promote the growth of small and medium-sized enterprises and to solve the financing problem of small and medium-sized enterprises is drawing more and more national attention. Venture capital(VC),as a specialized investments committed to investing in small and medium-sized enterprises,especially in high-tech enterprise, is also paid more attention.The appearance of GEM which formed in2009provides a financing opportunity for small and medium-sized enterprises with good prospects.In China, although there are a lot of studies on VC, most of them concentrated on the theoretical part, little on empirical research,and the analysis of the venture capital based on industry are less.Besides,the number of research about the relationship between VC and the growth ability of small and medium-sized enterprises are not much. Why do VC invest in small and medium-sized enterprises? Whether VC improve the growth capacity of small and medium-sized enterprises? How it affects the small and medium-sized enterprises from the view of the industry level?The paper which is based on existing theories, tries to theoretically and empirically analyze VC mechanism.It is from the perspective of the growth of enterprise scale,corporate governance structure and business innovation capability,and makes a further answer to the above questions.Based on research findings, it puts forward some measures to improve the state of venture capital and promote the development of small and medium-sized enterprises.In the theoretical analysis part,the impact of VC on the growth of small and medium-sized enterprises can be found in more than one aspect.But previous literatures neglect it.The analysis in this paper includes the effect VC played on the scale,govern structure and innovation.The scale mechanism includes financing mechanism, reputation mechanism and screening mechanism.The govern mechanism includes the formation of the board, the selection of a professional team and other incentive measures.The innovation mechanism includes absorptive capacity, technological innovation and industrialization of achievement.As to empirical analysis,we estimate on both provincial panel data and cross-sectional data.Provincial level is mainly based on the perspective of the venture capital industry to analyze its effects on small and medium-sized enterprises.In the panel model,Chinese provincial data from2006to2011were gathered to analysis the effect. The regression analysis are constituted by the dependent variable which is the output growth of small and medium-sized enterprises,independent variables which are the amount of VC and some control variables.The using of panel model overcomes the deficiency of insufficient samples and the conclusion is more credible. In the micro perspectives,we use two samples including a panel data and a cross-sectional data.Provincial data from2009to2012were gathered contains a total of498sample observations due to the presence of missing data.In the cross-sectional data,we explored VC in152related firms belong to the GEM from2009to2010. We divided the small and medium-sized enterprises into two groups as VC-backed firms and not VC-backed firms first,to find out whether VC have the impact on the scale growth of small and medium-sized enterprises, governance structure and innovation capability.And then we estimate the impact of VC on152firms of small and medium-sized enterprises using regression analysis.The provincial panel data results show that VC improves the size of small and medium-sized enterprises and there exists a lag effect.Besides,asset of firms plays a positive role in promoting output while it has significant lag effect on it.The micro perspective estimate results show that in GEM market,VC expanding the scale of small and medium-sized enterprises, improving governance structures,while it has no effect on enhancing innovation capability.Finally,based on the conclusion,the paper puts forward some suggests.Eliminate the risk of VC speculation;improve the exit mechanism of VC;improve the two-way selection mechanism between VC and SMEs.