The Research On The Mechanism Of The Private Equity Fund To Promote The Growth Of The Small And Medium Enterprises

Faced with the current global economic integration,as a new type of financial innovation products,private equity investment has achieved remarkable results.Its function is not only reflected in broadening the financing channels of enterprises,but also plays an indelible role in multi-level training of capital market and promoting the further development of small and medium-sized enterprises.Especially in recent years,the private equity investment industry has gradually risen and developed significantly in China's emerging capital markets.Although it originated from the United States,this innovative financial instrument also has an extremely strong vitality in china.As far as China's current situation is concerned,the financing difficulties of SMEs have become a major constraint on their development.To solve this problem,we must broaden the channels of enterprise direct financing.As a community of interests in the sense of small and medium enterprises,private equity funds can broaden their financing channels on the one hand,on the other hand,it helps the structure innovation of enterprises and provides a good solution to the problem of agency.Through the understanding of the concept and the characteristics of private equity,the mature experience of the present situation and the international private equity in China by combining the multi-faceted will promote private equity investment in small and medium-sized enterprises are analyzed,including:improving corporate governance,enhance corporate value and enhance business performance to enhance the capacity of sustainable development,etc.,and the Shenzhen SME board 89 small and medium enterprises empirical analysis.The results show that private equity investment has a significant positive correlation with SME performance or corporate value,that is to say,private equity investment has a significant effect on the development of SMES.Private equity investment fund will not only promote the growth of small and medium-sized enterprises,will be the day after the break into the securities market financing has laid a solid foundation.The purpose of this paper is to carry out relevant research,make the best efforts to make recommendations for the rapid growth of SMES in China,to promote private equity investment,and then play its role in promoting.