Research On The Relationship Financing Of Small And Medium-sized Family Enterprises

Small and medium-sized private enterprises (mainly for family business) widely exist in the social and economic activities of China, which play an irreplaceable role in the aspects of improving employment, enlivening the market, stimulating investment, increasing tax revenue and expanding export. So they are also an important part in Chinese national economy. Recently, the small and medium-sized private enterprises in China are in a stage of "passing the winter" with facing the problems of "labor shortage", excess production capacity and profit decline, etc. While the problem of financing is more outstanding. The events of "running away" and "jumping" of business owners because of capital chain rupture happened repeatedly for private family enterprises in Zhejiang, Guangdong, Jiangsu and other places. Although it happened under the greatly influence of economy home and abroad, financing problem was the last breakthrough. The ways of financing of small and medium-sized private enterprises themselves are also worthy to be noticed and analyzed.This paper analyzes and observes from the financing features of small and medium-sized private enterprises themselves based on reality observation (individual cases and small-scale investigation). China's small and medium-sized private enterprises are evolved from family and clan, which was deeply marked with the family (clan) community (especially in the initial stage of pioneering). They are also greatly influenced by family (clan) rules in decision-making mechanism, employment mechanism, intergenerational transition, etc., and they have a certain peculiarity in the way of financing. The subjects of economics and management use endogenous financing, informal financing and folk lending to summarize the financing peculiarity of Chinese small and medium-sized private enterprises at the present stage, which do not distinguish the difference of financing peculiarity between Chinese family business and non-Chinese family business.This paper thinks that since the small and medium-sized private enterprises were born out of relationship community, some rules in daily life system will go down to the enterprise system, and the social operation mechanism like "relationship", etc. will also be implanted into the enterprise system to impact on the way of financing. This paper proposes that the way of financing for small and medium-sized private enterprises is actually a certain of congruent relationship formed in the "differential pattern" in daily life because of the implanting of "relationship", which is the emotional financing based on obligation law, reciprocal financing based trust law and transactional financing based on interest law. If "relationship" can be an important concept to summarize the Chinese society, then "relationship financing" an also be an important concept to analyze the financing features of Chinese small and medium-sized private enterprises. The so called "relationship financing" means the debtor creditor relationship formed in the existing "relationship" between both sides in society. The expectation of "debit and credit sides" for both sides is deeply influenced by daily "relationship'" rules. According to the different relationships between small and medium-sized private business owners and the opposite side, the ways can be divided into emotional financing, reciprocal financing and transactional financing. Relationship financing is different from the concept of "relational financing", which is a concept to try to summarize the unique financing features of native small and medium-sized private enterprises.Why the relationship financing can be existed? Or why small and medium-sized private enterprises prefer relationship financing? This paper puts forward relevant assumptions based on related theories and verifies preliminary through small-scale samples. (1) Relationship financing is related to the "privatization oriented" family vision of Chinese family business; (2) Relationship financing is related to the repulsion of formal financing; (3) Relationship financing corresponds to the industry scale and industrial nature of small and medium-sized private enterprises at the present stage to some extent.Why the relationship financing has been out of operation in recent years? With the help of relevant facts, this paper thinks it is because the constraint condition of "relationship" has changed, the rules of social community has lost the conditionality, and the boundary of "relationship" has also changed with the acceleration of market transformation and social mobility; besides, the "non-contractual" phenomenon of relationship has appeared with the expansion of relation chain. The relationship financing has come to the "profit oriented" fork lending from emotional and reciprocal financing. The "relationship" has been divorced from insertion and the relationship financing has lost efficacy.Finally is the conclusion of this paper. The important contribution of this paper: first of all, this paper tries to extract that relationship financing is an important way of financing for Chinese small and medium-sized private enterprises; next, it proposes three factors that correspond to the relationship financing of small and medium-sized family enterprises; finally, this thesis thinks that the folk lending disturbance of small and medium-sized family enterprises is the result of the anomie of relationship finance, which is because of the out of a problem of social system that restrict the relationship financing. Relationship financing has come to "profit oriented" type from emotional type, trust type and reciprocal type. For the anomie problem of financing for small and medium-sized family enterprises, we should both pay attention to the creation of formal financial system and prevent the anomie phenomenon brought by relationship financing.