Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Business and Policy Studies

Series Vol. 10 , 13 September 2023


Open Access | Article

Small and Medium-sized Enterprises Private Equity Risk Management

Xiaoyang Hou * 1
1 University of International Business and Economics

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 10, 37-45
Published 13 September 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xiaoyang Hou. Small and Medium-sized Enterprises Private Equity Risk Management. AEMPS (2023) Vol. 10: 37-45. DOI: 10.54254/2754-1169/10/20230425.

Abstract

Small and medium-sized enterprises are playing an important role in Chinese economic development. However, due to the lag in system construction, the scale of small and medium-sized enterprises is relatively small; many of these enterprises lack funds, and it is difficult to get loans. The financing difficulty of small and medium-sized enterprises always exists in China, which has become an important reason restricting their further development. In the past, smes used to borrow money from banks to finance their development. They have been borrowing from banks with their assets as collateral, but as the country has adopted a tight monetary policy, most of the loans applied for by smes have been rejected by banks. Private equity fund has the characteristics of low financing threshold and high added value of enterprises, helping many small and medium-sized enterprises to solve the capital problem, enabling them to develop and grow. In the process of private equity fund financing, the macro environment and micro factors bring huge risks to the whole financing process. Therefore, it is necessary to evaluate, analyze and control every risk that may cause financing failure in the financing process. This paper uses the method of literature review, qualitative and quantitative combination, through the construction of small and medium-sized enterprise private equity fund investment risk evaluation index system, from the micro and macro environment to evaluate and analyze the risk, for the analysis of small and medium-sized enterprises may face financing risk to provide effective avoidance measures.

Keywords

private equity fund, risk evaluation, risk management

References

1. Zhou Shi. 2022(07). China Small and medium enterprises research report, 2021(11). Research on the trend, problem and supporting strategy of the development of small and medium-sized enterprises. macroeconomic study:165-177.

2. Cheng Juan, 2022(01).Research on the construction of private equity investment risk evaluation index system based on analytic hierarchy process. .Industry, finance and technology:118-126.

3. Teng Ying,He Xueshuang,Ni Debing,2017.Risk Assessment of private equity Investment Projects based on Analytic Hierarchy Process and Fuzzy Comprehensive Evaluation -- Taking three private equity investment projects as examples. Journal of University of Electronic Science and Technology of China (Social Sciences):67-73.

4. Ni Shaokai, 2002(06).Comparison of 7 methods to determine the weight of evaluation index.south china journal of preventive medicine:54-55+62

5. Bai Rui, 2014.Research on supply chain Finance and its risk control from the perspective of SME financing. https://kns.cnki.net/kcms/detail/detail.aspx?dbcode=CMFD&dbname=CMFD201501&filename=1014404428.nh&uniplatform=NZKPT&v=sHon15EcmxRs_czke3QdOZKmjU42hWqxpLtfGNM_aoD909ejbHbYH1yrOrnjmVKI.

6. Song Caixia, 2007. The financial risk of enterprise merger and acquisition and its control strategy. https://kns.cnki.net/kcms/detail/detail.aspx?dbcode=CMFD&dbname=CMFD2011&filename=2009062872.nh&uniplatform=NZKPT&v=NQhx5YMM4lnLZbQQXZxnqOS--imRpH-Ko8Ry6ME94Pu4suF7nYZN2iVWf_LRQH3M

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Business and Policy Studies
ISBN (Print)
978-1-915371-47-8
ISBN (Online)
978-1-915371-48-5
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/10/20230425
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated