Research on Financing Constraints of Private Enterprises in Xi'an
Download as PDF
Financial development lags behind the level of economic development, which will have many adverse effects on enterprises, the most prominent of which is the problem of financing constraints. Under the existing financial system, private enterprises are facing financial difficulties and high financing costs compared with state-owned enterprises, and they face extraordinary financial risks and are liable to fall into bankruptcy. Because high interest expenditure can not be recorded in the cost, they have to adopt tax evasion to offset the loss of tax baffle, and further increase the operational risk, so the development of private enterprises will inevitably be seriously shackled. With the further deepening of reform and opening up, private enterprises account for more and more of the total and increment of GDP, and play an increasingly important role in China's economic development. However, the difficulty of financing has become a key factor restricting its follow-up development. Firstly, the paper explains the current situation of financing difficulties of private enterprises through data, and then analyses the causes of this situation from three aspects.
Research, private enterprises, financing constraints