Study On The Financing Of Private Enterprises

Since the reform and opening up, with the rapid development of economy, private enterprise has become an important part of China's economy in rapid development and become a valued economic growth point in the new normal. Although the private enterprises are closely related with our economy, employment and social stability and the government has attached great importance on policy orientation, but the financing is still plaguing private enterprises, becoming a bottleneck of restricting its development. Theoretically, according to different classification criteria, the financing method is divided into direct financing and indirect financing, internal financing and external financing, corporate financing and project financing, etc. Financing demand, financing costs, the qualification and the level of governance of enterprises are all the factors to be considered in the process of financing of private enterprises. Despite the existence of such a diversified financing channels, but subject to China's financial system, the degree of economic development and special national conditions, the current situation of private enterprise financing is not optimistic. Apart from the external factors, private enterprises themselves also exist some defects, including the lack of rational financing plan, pay attention to the amount of funds but ignoring corporate governance and the short-sighted behavior and poor management in process of financing. Research on the above issues is important to regulate the development of private enterprises.On the financing problem of private enterprises, the experts and scholars from China and abroad have carried on the research on the capital structure, the financial environment, the economic cycle and the guarantee system and so on and have drawn useful conclusions. But at present, many scholars analyze and explore from macroscopic angle, and there has been no scholar systematically researching the internal and external problems in process of private enterprises financing, especially not carefully combing their own internal factors, which provides research space for the thesis.NVC lighting, a private enterprise, has experienced six big financing in its development history, which leads to fighting for control rights three times so that it is concerned by academics and practitioners. Using the theory of capital structure and corporate governance, combining with the financing process of NVC, as well by analyzing the difficulties and problems the NVC facing in the process of financing and combining commercial bank credit policy and guarantee system of our country, the thesis discusses the shortage during financing of private enterprises in our country. The study found that the private enterprises have some ubiquitous problems, such as the lack of long-term planning of financing, not understanding the capital market well enough, ignoring corporate governance and the reasonable allocation of control rights and the limited financing environment. while discussing problems, the thesis puts forward a series of policy recommendations combining with our national condition.The research content of this paper is divided into the following parts. Firstly, this paper sets forth the background and significance of the topic, and reviews the domestic and foreign literature and research results related to the financing of private enterprises. Secondly, this paper introduces the theory on corporate financing and corporate governance and the contents of these theories that related to the paper. Thirdly, combing the development situation of private enterprises in our country, it discusses the current alternative financing modes, the factors affecting the financing and the problems existing in the financing of private enterprises in China. Finally, taking the NVC as example, the paper analyzes its existing problems during financing based on expounding the financing process and the event of fighting for control right, and combining the concrete national conditions of our country, some suggestions are put forward concerning the financing of private enterprises.