Research On The Influence Of Entrepreneur's Social Capital On Financing Ability Of Family Enterprises

The financing difficulty of small and micro enterprises is a universal and long-term economic problem in the world.At present,the formal financing channel represented by bank loans and informal financing channel represented by private loans occupy the financing market of small and micro enterprises.However,due to information asymmetry,financial repression policies and the constraints of enterprises' own factors,the financing needs of small and micro enterprises are often failed to be satisfied,and small and micro enterprises in China are under great financing pressure..Social capital theory finds that social capital has many important functions on economy and social development,such as information transmission,trust building,risk reduction and transaction cost reduction.The financing,especially informal financing of small and micro enterprises,has a strong dependence on the social network based on blood,kinship,geography and occupation.Therefore,based on social capital theory and corporate financing theory,the paper chooses family enterprises as the research object,to analyze the impact of entrepreneur 's social capital on family enterprises' financing ability,and thus provide several feasible suggestions for solving the financing problems of small and micro enterprises.The main conclusions of the paper are as follows:Firstly,entrepreneur's social capital has a positive role in promoting the financing ability of family enterprises,whether it is formal or informal financing.This positive impact will be reflected not only in the availability of loans,but also in the matching degree of loans.In addition,family business owners with high level of social capital will prefer formal channels for business financing.Secondly,from the perspective of mechanism,the formal financing channel represented by bank loans pays more attention to the personal characteristics of business owners,in order to judge whether the family enterprise is a high-quality customer;the informal financing channel represented by private loans pays more attention to the social network resources of business owners,including their relatives circle,friends circle and government circle.Thirdly,from the perspective of the difference functions of component factors,we find that the influence of modern social capital of entrepreneurs with the content of friend scale factor and public environment factor is greater than that of traditional social capital of entrepreneurs with the content of identity status factor and relative scale factor.Fourthly,from the perspective of enterprise assets,the influence of entrepreneur's social capital in formal channel financing is limited by the asset scale,while the influence of entrepreneur's social capital in informal financing is not.Fifthly,from the perspective of the construction of small and medium-sized financial institutions,the low construction level of small and medium-sized financial institutions will obviously restrict the effect of entrepreneur's social capital on formal channel financing.And the improvement of the construction level of small and medium-sized financial institutions is conducive to the expansion of the influence of entrepreneur's social capital in informal financing.In conclusion,entrepreneur's social capital cannot break through the regional financial environment.