Situation and Policy Cluster corporate finance needs analysis

Abstract: The Research data show that there is a shortage of funds firms in cluster, the phenomenon of financing, heavy tax burden and tax unfairness, lack of credit subsidy and collaboration between firms in cluster weak financial firms in cluster lack of funds is an important reason for improving the tax system should be established to support credit mechanism and promote the implementation of the cluster enterprises finance law at every step countermeasures.

Keywords:: industrial cluster, enterprise, financing mechanisms

One, of the problem

Industrial clusters in promoting regional Economic Development, the importance of enhancing regional competitiveness has been confirmed by theory and practice. After all, the competitiveness of industrial clusters and their "cell" members - single closely related to the competitiveness of enterprises. However, my great Most industrial cluster is from the township, the rise of the street, from small and medium private enterprises networking groups formed. the basis of these enterprises is poor, weak Economic foundation, commonly encountered in the process of growing shortage of funds, and has become an important factor impeding the Development of its one. king group Strong (2005), Li source of new and Xu Huiying (2006), Yang Hanbo (2005) and Wang Bixiu et al (2004), Zhejiang, Guangdong and Fujian cluster financing situation of the investigation show that the cluster enterprises generally are insufficient funds external financing.

External financing sources led to clusters of enterprises rely mainly on endogenous financing, that is by increasing the retained earnings, additional means of financing investment property owners. This financing "preferred" the inevitable result is that the cluster of its own funds in the capital structure proportion of partial large. source of new and Xu Huiying Li (2006), Chen Xiuli (2006), Wei Shouhua and Shaodong Tao (2002) and others, Research shows that Guangdong, Fujian, Zhejiang and white clusters of enterprises the proportion of funds in excess of 60%. The reality of the capital structure strengthening by many scholars on the self-financing is the main mode of financing of private enterprises cluster awareness. but the actual logic is not the case. It is precisely because the cluster is difficult for enterprises to obtain funds from the external market, it can only rely on to meet the Development needs of internal accumulation, but kinds of measures at the expense of financing the growth rate of business should be. Thus, the external financing difficulties for SMEs to overcome the cluster is the proposition of the Development of the reality of the cluster. This paper intends to analyze the situation of enterprise funds of the cluster based on external factors, and explore ease the shortage of funds business issue a valid path.


Second, the domestic and international literature review

Has long been a shortage of funds for SMEs, financing is a global problem, theorists have given a lot of Research. However, industrial clusters, the corporate finance Research has just begun. Looking at the existing cluster of corporate finance literature, the results mainly in the following three aspects . First of all, many scholars have analyzed the cluster to cluster enterprises financing advantages, such as Wei Shouhua, Shaodong Tao (2002), Zhang Bingshen, Ma Jian Council (2003), ZHAO Xiu-fang, Picture Theory (2003), Guo XI IV (2006) , the study compared to the monomer that small and medium enterprises, industrial clusters reduce corporate finance transactions in the cluster information asymmetry, thereby reducing the financing transaction costs, improve efficiency and financing Research emphasis on loans from financial institutions view the risks and benefits . Second, some scholars use survey analysis, the industrial cluster financing situation to start empirical research, such as Wang Group Strong (2005), Li source of new and Xu Huiying (2006), Yang Hanbo (2005) and Wang Bixiu (2004), Guo Bin and Liu Man Road (2002), the conclusions are mainly clustered in gaining access to external financing, the source of financing is needed for Development cluster enterprises to raise the primary means of funding. Finally, most existing research on how to solve the problem of financing the cluster do business countermeasures, Man Road, such as Guo Bin and Liu (2002) that only standardized operation guide private financial organizations, the establishment of SME financing services located in private financial institutions in order to fundamentally solve the financing problem of SMEs, Yang Hanbo (2005) from the perspective of how banks corporate finance transactions carried out with the cluster and the reasonable control of the transaction risk. Clearly, reform of financial institutions and credit behavior modification to improve the cluster of great significance to corporate debt financing, but not the only solution.

Western Cluster and domestic financing showed different characteristics, research methods to case study-based. Boston University professor Ja-runee Wonglimpiyarat (2006) Cluster in Silicon Valley in the analysis of the dynamic process of development, found that venture capital and government financing Innovation projects is a catalyst for the success of Silicon Valley. This is mainly because the Industry itself has a Silicon Valley high-risk, high-return characteristics, able to attract venture capital around the world. And most of China's industrial cluster is the traditional processing, manufacturing Industry, so most Industry cluster in Silicon Valley financing model is difficult to apply. British scholar Anna Spadavecchia (2005) by the Italian south and north cluster case study found that government support (state subsidies) is an important source of funding for firms in cluster support in the form of soft loans (soft loans), subsidies (grants), financial assistance (fiscal subsidies), etc., and to refute the academic corporate finance completely rely on the cluster self-financing (relied entirely 0n self-financing) the mainstream view. Italy's main industrial clusters is a footwear, textiles and clothing, technical requirements and lower barriers to entry, this and along the southeast coast of China industrial clusters similar. However, the cluster of corporate finance in China hardly any government support, so for a lower start cluster enterprises in China , in fact more eager to government support, this is regrettable. Swedish scholar Joakim Winborg and Hans Land-strom (2000) from a management point of view a more comprehensive and systematic study of the financing of SMEs in the widely used practice every step Financing Act (fi-nancine bootstrapping), they are 900 Swedish SMEs through interviews, questionnaires, summed up the law, including delay (dela-ylng bootstrappers), relationship-oriented method (relaionship-onen-ted bootstrappers), altitude of every step finance law. and focus on the external market financing research results have been compared to the financial Economics, Joakim Winborg and Hans Landstrom, focused financial management from the perspective of this issue, which is our cluster theory and practice of corporate finance has great reference.

It can be said, compared to state-owned enterprises, foreign-funded enterprises, weak government support of private enterprises is the shortage of funds and the cluster of difficulties in financing important reasons, and mainly in tax policy and credit policy both to unfair treatment. Therefore, this article on the one hand along the tax, the credit line of the two clusters of government support mechanisms for corporate finance, the other from the perspective of the cluster enterprises to strengthen cooperation at every step to explore how to build a financing mechanism.


Third, the impact of cluster factors of corporate finance capabilities

Financing needs of the behavioral response of capital. In addition to the quality of business operations, management and other internal factors, in which the concept of business clusters and macro-environment is also greatly affect the flow of funds, such as tax policy, credit policy and the region The industrial cooperation status.


(A) of the tax burden cluster internal financing capacity constraints
Tax fees inside and outside the direct tax increase the financial burden of the cluster, reduce corporate cash flow. Due to historical and other reasons, a long time China's private enterprises and state-owned enterprises, foreign-funded enterprises in different tax treatment, tax inequality and tax excessive diversion of a large number of medium and small firms in cluster funds. Section Qiang Wang (2005), 500 clusters of enterprises in Zhejiang province conducted research and Fujian Association of Social Organization of Fujian Province, Wang Bixiu 106 survey of private enterprises within the cluster Research shows that over half of the private enterprises that provinces and Tax fees tax burden. In contrast, both inside and outside the tax burden on private enterprises in Fujian Province, Zhejiang off than weight, which is faster and better development of industrial clusters in Zhejiang reasons one.

Tax policy is a benefit distribution tool, a direct reflection of the importance enjoyed by private enterprises and the degree of support. But with the state-owned enterprises, foreign companies than do private enterprises in a certain extent, there is emphasis on tax issues. Wangbi Xiu et al (2004) survey found that In addition to private enterprises pay 33% corporate income tax, but also pay personal income taxes, the state enterprises to purchase domestic equipment deduction of income tax preferential policies, often to the exclusion of private enterprises, tax relief for the starting time, foreign companies are starting from the profitable year , private enterprises are starting from the starting date, limited liability company in the replenishment of the nature of the private enterprises have to pay personal income tax, while foreign companies not only need to pay individual income tax, but also a certain proportion of corporate income tax return. In addition, a variety of standard fees, sponsorship fees , training, press a lot of fees Tax fees. Some private enterprises to pay annually to the cost of various government departments as many as dozens of foreign tax paid some fees even more than taxes. in the tax injustices so that family property had to be more private enterprises with weak overwhelmed, frustrated ability to accumulate internal funds.


(B) of the stock market and the venture capital market financing of basic channels to be blocked, restricting the cluster from the external market intermediation businesses ability to fund equity
Short time since China's securities market development and other historical reasons, the stock market are few, high barriers to entry, the majority of firms in cluster of basic blocked at the door, it is difficult from the motherboard market intermediation equity funds in May 2004 when the market opened in Shenzhen SME Board However, in addition to the requirements for listing firm size decreased, the other with almost the same motherboard market requirements, the vast majority of small and medium enterprises are still shut out the cluster. Meanwhile, the establishment of venture capital market macro conditions, the operating mechanism not mature, venture capital is difficult to enter the Industry cluster. can be expected, the cluster is difficult for enterprises of funds from the equity market conditions on the facility in the future much longer period of time is difficult to change.


(C) of the credit policy is irrational, lack of credit support, which restricts the cluster enterprises from outside the ability of debt capital market intermediation
Credit policy is important for firms in cluster one of the mechanisms of exogenous financing, but the current credit financing mechanism is basically exogenous to adapt to the financing needs of state-owned enterprises built up. State-owned commercial banks as credit market monopoly, the main target not the majority of private enterprises, so the cluster is a difficult business loans realistic ills. this case, this should be designed to support a variety of small and medium sized firms in cluster creation and development of support loans, such as soft loans, preferential loans, financial subsidies, China in this regard is almost blank. more severe, the small and medium enterprises from bank loans clusters often face more stringent requirements that some companies feel that banks discriminated against private enterprises. For example, some banks charge to small and medium firms in cluster loans or loan the difference between the delay compensation payments paid to avoid interest rate control, medium and small firms in cluster is difficult to obtain credit from banks, technological renovation loans, and the high cost of the mortgage process, short-term, loan approval process. from the loan principal point of view, lack of money markets for small and medium private enterprises in the private bank or banks, but also a lack of medium and small firms in cluster policy for the banks, no more business to promote the growth of clusters of various support funds or foundations. Thus, the current indirect financing channels in China For the majority of cluster enterprises, is extremely narrow.

The existing imperfect financial intermediary services, increasing the difficulty of small clusters of corporate finance. The banks to reduce loan risk small clusters often require collateral for loans or provide credit guarantees, as private enterprises in the cluster less common assets for collateral, so the first three major security requirements and dependencies. But the reality is that our current lack of effective security mechanisms for small and medium enterprise clusters.

Private financing costs, firms in cluster is not conducive to the accumulation of capital, small and medium enterprises can cluster from the outside equity capital markets and debt capital market facility. In order to solve enterprises to set up, develop the necessary funding, many SMEs are often forced underground or private financing usurious financing. Chen Xiaohong, Liu Jian (2003), Wang Bixiu (2004) and many other scholars that "friends and family loan", "private financing" is an important way of financing private enterprises, resulting in the more developed regions of the private economy, the more underground financial "prosperity." However, the underground finance are often high interest rates, lack of legal protection, some enterprises to heavy load-bearing financial pressure, once the lower prices or face price increases and other material business risks, often will cause businesses to death.


(D) the level of collaboration between firms in cluster is not high, limiting the ability of the cluster based financing transactions
Industrial firms in cluster coexistence of a chain, each upstream and downstream production of either undertake, either competing with each other procurement, sales, equipment leasing and capital settlement and other services frequently. If good cooperative relations between enterprises, you can use the deferred payment money or payment in advance, shared equipment or Technology, etc. alleviate a shortage of funds caused by the shortfall in resources. However, the collaboration of Industry clusters are generally poor, price competition, information or Technology blockade, not uncommon phenomena poaching each other . more severe, the industry chain is not complete leaving not trade enterprises in the cluster based financing, thus limiting the flexibility of financing firms in cluster. cluster enterprises are all on the same chain node, a company's cash-flow problems often will spread to other nodes on the chain of companies that could eventually lead to industry-strand breaks, causing the cluster of Economic contraction, collapse. Therefore, for cluster companies establish financing mechanisms for the actual situation of great practical significance.


Fourth, the policy needs of corporate finance

(A) the creation of enabling business growth tax policy cluster, reducing taxes, the Tax burdens and enhance cash flow firms in cluster
Tax policy adjustments should include tax fairness and reduce the tax burden two aspects. Tax burden is the private equity business as an important market for the cluster of Economic entities and state-owned enterprises should enjoy, the same tax treatment of foreign-funded enterprises. At present China's private firms in cluster or " second-class citizens ", as different as to make the tax relief, tax concessions with respect to unfair treatment. For example, income tax rates and tax relief for big differences between domestic and foreign policy, many private enterprises leading to coastal property owners to change enterprise ownership by investing in immigrants nature of the main reasons. Thus a unified tax-depth development of China's market economy, the inherent requirements. reduce the tax burden is the tax burden on an equitable basis in the priority support in cluster, as in the tax base, tax rates, exemptions and other aspects of the firms in cluster tilt, in particular clean up, straighten out all kinds of apportioning the burden of regulatory fees Tax. The U.S. government in promoting the development of Silicon Valley in the information industry cluster, there is targeted to remove the exit of venture capital capital gains tax, which greatly enhanced the the ability to attract venture capital in Silicon Valley. Since the tax is mandatory and free of fixed characteristics, reducing the tax burden can be as cluster enterprises enhance hematopoietic function as endogenous directly enhance the financing capacity, long-term to improve the financial situation of enterprises.


(B) the establishment of practical support credit projects, establishment of SME policy banks, improve credit financing mechanisms outside the enterprise cluster
Advantages of enterprise clusters and how the credit for state-owned banks to improve corporate credit mechanism of the cluster have been more abundant, not repeat them. But in our current distortions in the financial pattern, to make medium and small firms in cluster can easily credit financing through the normal channel access to finance is no easy task. First of all should learn from the Italian financing model, to develop support credit projects, the establishment of various national and regional credit funds, targeted solution to the problem of inadequate funding cluster enterprises. For example, set up to support the cluster R & D activities of research and development enterprise credit fund, or the establishment of technological transformation of enterprises to support the technical transformation of the cluster credit fund, or specifically to support cluster companies will commercialize patented Technology credit fund. the U.S. government to support the development of information industry cluster in Silicon Valley during the , has established a Small Business Innovation Research (SBIR), Small Business Technology Transfer program (STTR), high-Technology projects (ATP), the high-end defense research organization (DAR-PA), DuaI USe, cooperative research and development agreements (CRADAs ), Small Business Administration (SBA), manufacturing and expansion project (MEP) and human technology (mantech) and other innovative financing for eight projects in different areas which greatly promoted the upgrading and development of information industry in Silicon Valley.

Secondly, the establishment of a regional bank located in the cluster, directly to the cluster SMEs credit, settlement, financial management, consulting and other financial services. Such as 1983, the U.S. government set up in Silicon Valley, Silicon Valley Bank, for Silicon Valley companies in various industrial clusters provide credit and financial services and give full play to advantages of credit financing of industrial clusters. our government can also more mature, large-scale industrial clusters where the establishment of specialized services in the regional banking industry cluster companies. This aspect can break monopoly of state-owned banks, on the other hand, the financial sector to promote competition in the market is conducive to Economic development in accordance with market demand and financial order. reposted elsewhere in the Research Papers Download http://www.hi138.com Third, the conditions are ripe Regional, local governments can set up services specifically for SME cluster policy banks, so that the development potential of the cluster Buzhi Yu died in the initial stage.

Finally, clusters are often economically developed areas of financial developed areas underground phenomenon, the Government may consider relevant measures taken by the sun of the underground resources, the gradual introduction of private banks or private financial institutions, mechanisms, thus reducing the cost of financing firms in cluster G and risks.


(C) improve SME guarantee companies operating mechanism to promote the development of security operations
China's SME credit guarantee companies still in the initial period, the operating mechanism, laws and regulations are not mature, the need for relevant departments to actively guide. In recent years, although some local governments set up SME credit guarantee for small and medium companies, designed to SME loan guarantees, but the small number of security companies, registered capital is low, the reasons for applying the threshold is too high have not achieved the desired results. For example, Jinjiang, Fujian Province is the most developed industrial cluster areas, in 2000 the company set up a SME guarantee However, four years until 2004, only 22 cumulative guaranteed loan company pen, only for a 2003 corporate guarantees. Therefore, the SME credit guarantee mechanisms need to actively explore and constantly improve.


(D) at every step to promote the widespread implementation of the financing method
Every step Financing Act (financine bootstrapping) is not in the long-term external debt on the market or new ways to meet shareholder demand for funds. In fact, most small business operators are using a variety of business law at every step, rather than external financing. JoakimWinborg and Hans Landstrom summarizes six common methods, different methods reflect the resource requirements of the different needs of different orientation or internal situation. The first is owner financing method (owner financingmethod), directly or indirectly from owners or managers (own-er/manager) and its relatives, obtain resources, such as relatives and staff to pay wages below the market level, the use of operators of private credit card company fees, delayed payment of wages and other operators. The second category is the smallest of accounts receivable (minimizaiton of accounts receivable), by accelerating the collection or deferred payment, etc. to minimize the amount of the receivables take. The third method is to use a combined (joint utilization), such as through shared resources and other businesses or lease of equipment to alleviate the problem of inadequate resources. The fourth category is to delay the payment of (delay payments), or by delaying payment of funds for equipment used to extend the time as much as possible. The fifth type is the smallest of stock investment (minimization 0f capital investedin stock ), which is to minimize equity investments and avoid financial quilt of labor, but also to avoid crowding in the high-risk investment funds for normal functioning of enterprises (Wang Bixiu of the basic reality of private enterprises in China to avoid the stock investment). VI funding for the grant (subsidy finance), business applications through grants to public organizations, access to necessary resources. Harrisonand Mason (1997) found that 95% of the companies more or less applied at every step finance law. Clusters of small and medium enterprises in the more widely used in practice large Most of the methods, in particular, owner financing method, minimizing the delay in payment of accounts receivable method and equity method and the minimization method, but the combination method and the allowance for finance application surface should be small. should encourage the joint use of methods within the industry cluster promote the use of, give full play to bring the same or similar industrial equipment, technology, personnel, information, and other factors of production efficiency within the cluster, through the joint use of contracts to resolve enterprise resource shortage.

Cluster policy needs of these enterprises need to have the appropriate body to represent them and reflect the Government and other relevant departments, communication, negotiation or bargaining exchanges. Therefore, the representative should be established within the industrial cluster cluster cluster of interest to fulfill this responsibility the Committee for Industry Cluster financing mechanisms to establish and improve it as soon as possible.


Notes:
① Wang Bixiu 2004 survey showed 43.3% of the private enterprises that banks discriminated against private enterprises.


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