The Study Of Minor Enterprises’ Private Capital Financing Style After Financial Crisis

As one of the most vitality factors in Chinese economy, minor enterprises play an important role in style transforming, enlarge employment, promote increasing, citizen livelihood protecting, striving innovation, and realizing harmony. Nowadays, minor enterprises have paid50%taxes, contributed60%GDP, created75%technical innovations and provided80%employment in cities, which account for over99%percentage of all enterprises. After financial crisis,2008, government tightened monetary vigilance, commercial banks increased loan thresholds, and the credit process became more and more complicated with longer period of examination and endorse. In addition, lacking of management standardization, monetary requirement in minor enterprises made it much harder to attain financing through normal channels. On the other hand, some enterprise organization with cashes wish to lend funds and earn interests under the situation that the benefits have been compressed, generating the relationship between supply and demand of Private capital. However, the financing requirement of minor enterprises cannot be fulfilled in the formal finance system leading them to transform the channels into informal finance markets, thus the phenomenon of Private capital market in Zhejiang province is acting.In this paper, author induces the minor enterprises financing problems studies by researches all over the world systematically, analyzes the current dilemmas, and provides rational operation modules based on private capital characteristics. According to applying folk finance channels, bringing folk loans into play, author provides efficiency methods for minor enterprises and relative reference for policy selections.The paper is organized as follows. Firstly, introduces the background of market environment and government policies in this research; states the purpose and significance, the employed methods, and the structures of this research; illustrates the main innovations and defeats. Secondly, author reviews the minor enterprises financing documents. Based on theory development clues, this paper describes the completions and innovations of minor enterprises by foreign researchers, analyzes the current dilemmas and its reasons at the point of enterprises’view, looks back the theories and thoughts about the minor enterprise financing of Chinese researchers, and assesses the study results of different researchers.Thirdly, author appeals the current situation of Chinese minor enterprises financing. In this part, author mainly analyzes the current situation under macro economical background at the view of internal financing and external financing, based on the definition of minor enterprises and its standards. After this, utilizations are borrowed from international financing styles and its features, by which release the difficulties of minor enterprises financing through usage of folk capitals.Moreover, an exploration is achieved for minor enterprises financing styles. The details of theories and practices have been demonstrated carefully. This analysis illustrates the advantages when folk capitals intervene the minor enterprises financing at the aspects of information resources, interests, guarantees, and trade costs relying on interest and credit based rights, respectively. According-to this, maximum the utilization of folk capitals and resolve the urgent of minor enterprises financing channels are wished.Finally, further establishment and ensuring are accomplished by law systems, capital interests, and risk management, which provides strong support for minor enterprises financing.There are three important contributions of this paper. Firstly, in theoretical, a systematical induction about minor enterprises financing researches by home and abroad scholars has been finished and author proposes ideas. Secondly, the research analyzes the current minor enterprises financing situation roundly by connecting the practices and actual data. Thirdly, a foundation has been established for the policy strategy selection by encouraging private capitals being into financing channels and constructing private financing module, which related to the proposals in the Eleventh National People’s Congress and the Eleventh National Committee of the Chinese People’s Political Consultative Conference and abroad enterprise experiences. The defects of this paper are as follows:the financing module should be connected with different enterprises demands and situations to make rational financing structure and suitable selections. Because the maturation of minor enterprises owns different periods at which enterprises have different characteristics. On the other hand, further details should be researched where the financial requirements and development conditions are different in different industries.