Research On The Impact Of Venture Capital On The Growth Of GEM Enterprises

"Mass entrepreneurship,innovation",the rise of small and medium-sized enterprises(SMEs)is promoting China's economic growth,raising taxes and expanding employment,also promoting the development of venture capital industry at the same time.Venture capital(VC)provides important financial support,business decision-making and management advice,urging innovation and other value-added services to SMEs.It plays a positive role in the growth process of SMEs.Compared with foreign counterparts,VC is still immature in China,even thought it has been developed for thirty years.Therefore,a systematic analysis of VC and SMEs' growth can not only deepen the understanding of VC industry in China,but also provide a theoretical reference for SMEs which cooperates with VC.On the basis of combing related theories and literature,this paper systematically analyzes the mechanism and hypothesis of venture investment to promote the growth of SMEs,and makes an empirical analysis on the impact of venture investment on the growth of Growth Enterprise Market enterprises(GEMs).The research results showed that the growth of GEMs and VC have positive relationship.The IRROE and IRBR of the GEMs with VC was higher than those without VC in the first year,but three years and five years later,the difference was not obvious.There is no obvious correlation between the proportion of VC or the number of VC institutions and the growth of GEMs.The degree of VC's participation has not yet affected the growth of GEMs.It shows that VC could further effect on development of GEMs.VC industry,government and start-ups should further study and reconsider the related issues.