Research On Financing Channels Of Young Entrepreneurship In The Initial Stage

As the Chinese economy is developing rapidly,more and more young people choose to participate in the entrepreneurial wave,encouraged by relevant policies of the nation.Nevertheless,in virtue of lack of capital accumulation,the youths may always be confronted with the universal problem of fund shortage in the initial stage of entrepreneurship.In order to solve the above problem,it seems that the financing channels are particularly important.The thesis takes mainland China's young entrepreneurs' financing channels as research object,trying to analyze the obstacle and hardship that young entrepreneurs may face in the initial stage of entrepreneurship,and draws relevant conclusion on financing channel selection of young entrepreneurs in the initial stage of starting their business as reference to the financing of young entrepreneurs.Based on the relevant concepts and theories of young entrepreneurs' financing in the initial stage of starting their business,this thesis makes a detailed analysis of the present financing channels of domestic young entrepreneurs in the initial stage of starting their business,gives a comparative analysis of the pros and cons of six common financing channels,sums up bottleneck problems and troubles that young entrepreneurs may come across during their preliminary stage of starting business,summarizes characteristics of young entrepreneurs when they begins to found business and points out challenges that they may face,and makes an in-depth analysis of how the financing channel selection of young entrepreneurs in the initial stage of starting their business affects their entrepreneurship in the mean time.By investigation and data analysis,it finds that almost half of the initial capital comes from personal savings or loans from friends and relatives,the initial capital comes from investment of partnership.And other financing channels such as angel investment,petty loan as well as entrepreneurship contest bonus are just in the minority.Base on this situation,young entrepreneurs generally find it hard to finance during the preliminary stage.The average number of times that young entrepreneurs seek to finance during the preliminary stage is 4.6,and the rate of success is relatively low.Different financing channels have different effect on young entrepreneurs' behavior.In order to better improve the financing channels of young entrepreneurs and solve their difficulties in financing in the initial stage of starting business,it requires young entrepreneurs to rationally evaluate their projects and to reasonably choose as well as use the present financing channels.Secondly,it requires the financial institutes to provide a set of one-stop financing services including exploring financing channels,lowering the threshold for financing,simplifying financing procedures,etc.providing a set of one-stop financing services for young entrepreneurs.Last but not least,it requires the government to construct a financing service system for young entrepreneurs in the initial stage of starting their business through all sorts of ways,providing better financing support for them by the above countermeasures.