China's Small And Medium Private Technology Enterprises Financing Difficulties And Countermeasures

In China, Small and Medium Private Technology Enterprises are the companies engage in scientific and technological with small and medium size and non-governmental ownership. At present, more than 90% of private technology enterprises are small and medium enterprises in China. By more than 20 years of development, Small and Medium Private Enterprises have become a very important economic force in China,which maintain a rapid growth of income scale. Small and Medium Private Technology Enterprises is also a new important force to promoting technical innovation.But in their development process, Small and Medium Private Technology Enterprises have many problems such as internal and external. Financing difficulty of SMEs has always been an outstanding problem that had constrainted and influenced the development of Small and Medium Private Technology Enterprises Seriously. At present in China,the main financing methods for Small and Medium Private Technology Enterprises include Stock Market,Bank loans and Venture capital. But in reality, no matter what kind of financing methods for Small and Medium Private Technology Enterprises, there are certain difficulties. Through the study of principles of economics, the analysis of financing both sides referenced to "Prisoner's Dilemma",the classical model of game theory. In the context of different assumptions,there are "Prisoner's Dilemma" problem in the course of the financing game of Small and Medium Private Technology Enterprises. From a theoretical point of view,this paper revealed the reason for all parties choose non-cooperative sector of the Nash equilibrium, rather than select (loans, to fulfill the contract) that be Pareto-optimal conditions.From an international point of view,there are also the financing difficulty of Small and Medium Private Technology Enterprises in foreign countries.But for many defferent arrangements such as on legal,social system and the financial system in these foreign countries,their SMEs'pressure on the financing has alleviated greatly. we can learn from the successful experiences of foreign countries get some inspiration from China's reality.Through theoretical analysis and the advanced experience of foreign countries, we found the source of the financing difficulty of Small and Medium Private Technology Enterprises had been social credibility problem.They led to the credit crisis in whole Society, such as the non-disloyal of individuals and enterprises,the lack of incentives and punitive measures on credit, inadequate laws and regulations, imperfections of the credit srevice market and credit information opaque. the construction of credit system acts the important role in promoting the financing and development of Small and Medium Private Technology Enterprises in China. It is very necessary that constructing China's credit system as quickly as possible.Finally, strategies and recommendations for the financing difficulty of Small and Medium Private Technology Enterprises were the strengthening of national legislation, improving of the credit system, establishing good image of small and medium enterprises,and improving the multi-level and multi- forms of financial services system.