مجلة أبحاث ودراسات التنمية - Revue Recherches et Etudes en Développement -
Volume 12, Numéro 1, Pages 370-386
2025-06-30

The Role Of Venture Capital In Financing Small And Medium Enterprises (smes) In China

Authors : Taoui Fouad .

Abstract

This study aims to highlight the role of venture capital in financing small and medium-sized enterprises (SMEs) as a modern approach adopted by venture capital institutions to support these enterprises with the necessary funds and expertise for managing and organizing their operations. It also sheds light on the financial challenges faced by these enterprises, particularly in accessing traditional bank loans, and underscores the role of venture capital as an effective alternative. To understand the nature of this role, the study focuses on China's experience as one of the successful models in this field. China has effectively implemented this approach, which has contributed to the growth of SMEs and resulted in significant economic gains. The key factors behind China’s success include a supportive regulatory environment, appropriate government policies, and public-private partnerships. The paper concludes with recommendations for developing countries to create similar environments that encourage innovation, support SME growth, and achieve economic development.

Keywords

Venture Capital, Small and Medium Enterprises (SMEs), Financing