The Causal Analysis and Countermeasure Study of the Difficulty on Chinese Family Business Financing
|Keywords||Family business Financing Difficulty Causal Analysis Countermeasue|
According to the recent reports,37%enterprises are family businsess,and about 80%enterprises are step from family business.From Chinese Reform and Open,a large number of family businesses are become important parts of Chinese economical development.Family business need to unceasing boost capital to promote enterprise value when that progress.However,no matter in the beginning or the next step of a business,Chinese fanmily businesses are maily rely on self finacing,so the difficult of finacing become the outstanding problem at the present stage of family business development.The essential of family business is the union of family and enterprise. Ownership and Management close-up,decisione making and management concentrate in the hand of the owner.The size of family business has very important effect to it capital resource.Not a few investgation indicate that major size family business has more spatious channel than small size family business.Small family business has correspondence inferior position:on the one hand,it’s difficult to pass the strict investiate of exterio capital market to financing because small family business could not get normal enterprise plan. On the other hand,because a lot of country generally don’t need the small faminly business undertake the exterior audit in it annual report.So the potential invester could difficult to confident the finances fully and correctly of a family business.The dessymmetry of information between invester and family business make the larger regularity management family business has more attactiveness than small family business to the potential capital holder.In a certain constrained condition,seeking capital structure of mininum fiinacing cost is a significance aspect to implement the maximum enterprise value.Therefore, financing is an important term for modern enterprise development.Modern Financing Theory enclude MM theory,Weigh Theory,Financing Order Theory,Finacing Growth Cycle Theory,etc.All these theory make an explain and suggest to finacing.This aiticle make a systematical describe and jinduction to the question. Family business are effected by multitude factor and which finacing conducts are influencedby family and enterprise two dimension.Family dimension effect include: family value/ family expectation/ family benefits/ family’s favor of control to enterprise/;The influential factor of enterprise dimension include:enterprise’s time limit,enterprise scale,enterprise plan.Enterprise risk,vocation character,etc.The channel of enterprise financing has maily divde:endogenous financing and exgenous financing;direct financing and indirect financing,interests financing and debt financing.Family business has apparent difference to un-family business which has fovor to endogenous financing.The order of financing roughly is enterprise accumulate,raise money by relatives and friends,lend from civilian,loan by bank or credit community,and so on.Comparative with un-family business,family business rely on the private capital.When the family business need to financing from the outside,which would better choose financing in debt,other than financing in share. Family business’s in debg degree are less than un-family business.If you want analyze the difficult of family business financing,you should analyze the mamage structure first,(1)Ownership structure.An important character of family business is ownership concentrate.(2)In management mode,localized ownership inevitably lead to centralization in mamagement.(3)When hired employee,the important position,such as the management of finance,purchase,and selling,is almost occupy and control by family mumber,furthermore,the important of a work position make a direct ration with the position of a family.(4)In decision making mechanism, a bulk of family business use individual or family centralization decision making.The difficults of family business financing are:(1)the size of enterprises are small.(2)The defect of manage structure.(3)The deletion of credit.(4)The financing of marketletter are dissymmetry.(5)Relevant with commerce autospecific integration and loan tighten in transter period.(6)The monetary organization still has prejudice to family business.(7)The reason of family business’s ownership structure and management.In abroad,family business are discriminated the same when financing,but are not difficult,espetialy in developed country financing is not a problem.For the reason,we need to make use of the experience of overseas and combine the practical of our family business,researching realistic measures.The primary thinking is:family business shuould work hard the interanl work;The credit sturcture and capital market should multielement;The environment of society and economics including credit should consummate.The family business should improve manage structure first,i.e transfom ownership system,inlet multielement invest main body;inlet profession manager system;get rid of family-manage,establish effective supervise and encourage system and establish specialize management to choise virtuous person.Next,growthing credit and cutting down the dissymmetry of family business finacing market,i.e establish honest circumstance,increasing the law and economics penalty to the person who break his promise,making the society credit changed essentially.Estalish credit system, strengthering social credit foundation which should be the main content of government work.Establish multistrata and consummate financal markt system,establish private-owned enterprise fuarantee found,consummate private-woned enterprise credit guarantee system,cutting down the risk of bank for credit to the family business.Family business should dedicate to elevate the ntemal manage level,we should know that the shortage of capital is the reflec of the shortage of talented man and management level low.To rebuild enterprise credit system,we should establish the enterprise credit cultrue,and outstanding the credit important position in the core value view of the enterprise culture,forming the internal constraint system of enterprise credit.At the same time,family business should reform in the ownership system.First we should distinct the property right,according to the principal of contributiong, efficiency and impartiality to clear the property right of the family member,boundary the business’s ownership,identify the quality of enterprise,grading-up the constructiong of the ownership.Family business should tilde forward to the pulic at the base of clear internal ownership,coming ture ownership multielement.Including absorbing the capital of stating-owned,collective,and other in-public ownership to buy share,becoming the shareholder of the business;Through the pattern of joint venture,cooperataion,combination,degenerate and so on,or implement capital socialization with other enterprise conglomerate;give share to the employees who conturbute outstanding,impulsing their activeness and positive.Some suffice family business can issue stock,inlet society and the public invest to implement ownership multielement.For smoothing Chinese family business exogenous financing channel,we should firstly construct monetary supporting system of family business,solve the problems of opaque information and the information dissymmetry with monetary organization. Because of the wide domain of our country and the limited wealth of central government,it is feasible to set up credit guarantee system maily for middle and small business.Next,it should establish family business risk control system.Government should dedicate to making standard of risk invest market.As the of laws and regulations are relatively hysteretic,we should establish good market enviroment for risk investment,encourage the development of risk investment,provide preferential policy for risk investment,and promote the culture of professional personnel relative to risk investment.Thirdly,we should improve the market system of family business, develop stock market,and slacken the qulification of entering in stock market for family business.As private business,most of which are family business,play an important role in national economy increase,it is necessary to break the bottleneck of fiancing for further development of family business based on bank operation mechanism transformation and the investment system revolution of private economy.We should perform multi-directional,deep and systematic studies on financing problemes of family business to provide feasible means for solving these problems,based on experience of other countries and reality of our country.