Private Financial Funding Support For Smes

Thirty years' carrying out of the Opening policy witnesses the rapid development of China's small-and-medium enterprises (SMEs). It was indicated that, presently, among the corporate units in China, 99% are SMEs, more over; more than 50% of China's GDP are contributed by SMEs while only less than 20% of financial recourses are controlled by these enterprises. Finance problem is the contributing factor that limits SMEs' becoming bigger and stronger. How to solve it? This paper put forward a suggestion that we should legalize private fiance, and conduct it to serve the development of the SMEs.Under the condition that people haven't gain the same recognition on the definition of private finance, the paper bound it firstly. In the first part, private finance was divided into two kinds-in extensive sense and in narrow sense. The subject to be discussed in the paper is private finance in narrow which was defined as the part with rationality among irregular finance; in the second part, the paperdemonstrate the necessity of develop private finance, through the theoretical analysis of the reason for SMEs' finance problem and the analysis to the limitation of banking finance and venture capital, etc; In the third part, the paper give some deeply research on China's private financial market, mainly including the decision of interest rate of private finance and economic efficiency of private finance, both positive and negative; In the forth part, probe the supporting to SMEs from the demand and supply of the private finance; Finally, the fifth part, make some policy suggestions that conduct the development of the private finance to support the SMEs...