SME Financing Innovation-private Equity Investment Process And Problem Research

In recent years,with entering a new stage named "new normal," China has adopted a strategy that includes vigorously promoting innovation and supporting the private enterprises,in order to boost the economy and ensure sustainable development.As an important part of economic development,small and medium-sized enterprises have to face with the problem of shortage of funds during the develop process.The traditional financing methods can hardly meet the huge needs of the them.And it is not that easy to issue bonds or seek financing by listing on the stock market with such a strict standard.It is imperative to open up some new financing channels to help small and medium-sized enterprises develop.At the same time,we should allow private equity investment to gradually entered this area.In the 1990 s Private equity investment has entered our market and has developed rapidly more than 20 years.At present,the number of private equity fund managers who registered in the China Securities Investment Fund Industry Association has exceeded 20,000,and the number of fund management scale has exceeded 10 trillion.All of these have injected fresh blood into the Chinese capital market.Compared with the traditional financing methods which focus on assets,private equity investment pays more attention to the growth of the company.This is highly compatible with the characteristics of many domestic small and medium-sized enterprises which have small assets with short development time,but full of potential and vitality.Private equity investment has become an indispensable part of small and medium-sized enterprises financing.Although the advantages of private equity investment are very obvious,there are still some problems existing during the operation.In this context,this paper adopts a combination of normative research and case analysis to analyze the development of China's small and medium-sized enterprises financing and the development of private equity investment industry.Then summarizing the conditions and risks which small and medium-sized enterprises have to confront during the private equity investment.Taking a company called A which used private equity financing as an example,deeply analyzing the process of private equity investment in small and medium-sized enterprises in order to explore new features and problems.Finally,it put forward the proposals and countermeasures for private equity investment institutions and small and medium-sized enterprises.