The Legal Regulation Of Private Finance For SMEs

SMEs(Small and Medium Enterprises) as an important force in China’s economicdevelopment is an important part of our national economy. Since the reform andopening up, China’s SMEs development speed is very fast, made a great contributionto broaden employment channels, to increase national income, expanding domesticdemand and promote economic growth. However, the lack of funds, financingdifficulties always exist in the process of the development of SMEs, the problem offinancing serious constraints to the further development of SMEs in China.Affected by many factors limit the formal financial sector within the financialsector in China is difficult to meet the financing needs of SMEs. Especially in theshadow of the current financial crisis has not yet dispersed, enterprises are strugglingto further increase the financial pressure. In this context, a large number of small andmedium enterprises have to support the demand for funds from alternative sources offinancing, making private financing channels for financing has gradually become animportant means of financing of the SMEs. However, China’s current legal norms ofprivate finance for SMEs is not perfect, which seriously affected the security andstability of the financial sector in China. Private financing behavior of SMEs throughthe legal means to regulate and safeguard the financial security of the investment andfinancing in China have important practical significance. Thus the starting point forthinking, the paper focuses on analysis of the legal difficulties faced by the private finance for SMEs, and discusses the current lack of legal system of private financingfor SMEs. With the reality of China’s socio-economic and SME development, to learnfrom foreign practices and experiences, to achieve the perfect mechanism of the legalnorms of the private financing of SMEs in China, so that from a legal perspective tobetter regulate the private financing for SMEs in China, the purpose of. The full textis divided into four parts:The first part of the private finance for SMEs an overview, including small andmedium enterprises to define the scope, define the scope of private financing, thereasons and the main way of private financing for SMEs. In this paper, an overview ofthe private financing, in full-text is a foundational chapter, lay the foundation forfurther discussion later.The second part discusses the necessity of legal regulation of private financingactivities for SMEs, from non-governmental financing for SMEs have disadvantages,the adverse effects on society, the existence of long-term nature and the imperfectionsof the current legal aspects to explain the current understanding ofprivate financingfor SMEs, the urgency of the necessity of legal regulation, to lay the foundation forher later further.The third part of foreign countries the legal system of private financing for SMEsto do analysis, comparing the practices and experiences of three countries in theUnited States, Japan, Germany, in order to find out by comparing the law of privatefinancing of SMEs in China regulation can learn from.Build the relevant laws of the private finance for SMEs in the fourth part of theprinciples and main contents do financial freedom, first from the principles of legalregulation of private financing should focus on three aspects of the financial securityand financial efficiency demonstrated. And then proceed from the analysis of thestatus quo and existing problems, to clarify the main should improve the system oflegal norms, regulatory mechanisms and three aspects of the guarantee system tostrengthen the legal construction of the private finance for SMEs in China.