Jiangsu Private enterprises favor venture capital to shape development and competition new advantages

Under the new situation, private enterprises, especially the large scale of the traditional industry enterprises, by what shape the new advantages of development and competition?　　Reporters recently from the provincial Development and Reform Commission and other departments to understand that many of the enterprises in Jiangsu have been eyeing the "venture capital", some high-tech, high value-added, high-risk industries have become their pioneering "hot land." It is understood that venture capital as a new type to support innovation, creation, entrepreneurship as the main purpose of investment and financing mechanism, to overcome the technology and economic "two skins" phenomenon, the release of innovative energy, the realization of independent innovation of the "switch" "Catalyst" and "incubator" to achieve "research and development" of the real combination. Investors can reap substantial benefits by providing capital to these emerging companies with potential for appreciation. But at the same time venture capital is a risky, portfolio, long-term and professional investment.　　Its goal is to increase corporate value, not just short-term profits. Jiangsu Huahong Industrial Group Co., Ltd. will expand the company's business scope to High-tech, the company's chairman Hu Shiyong recently interviewed by reporters that their company's total assets of 2.8 billion yuan, leading industries have chemical fiber, machinery, chemical, and more for the traditional industries. In the rapid development of the group, how to adjust their industrial structure, is the most he considered the problem. To this end, they with the "returnees" team to create the Kai Road Granville Group Joint Investment, the establishment of the Jiangsu Kai Road Granville Electronics Co., Ltd., this is a bold step by the company.　　The reason is to fancy the team in the Silicon Valley for many years to have the world's leading core chip technology, the chip with high security, low price, high reliability and large capacity, in the market competition has a great advantage, the group can use this to achieve product upgrades, enterprise transformation. As a beneficiary, Xiaonan, Vice general manager of Wuxi Suntech, said that venture capital has played an important and positive role in Wuxi Suntech's establishment and development, and the flexible operating mechanism of venture capital has played an irreplaceable role in the development of Suntech in Wuxi.　　In his view, the new flexible venture investment incubation mechanism gave rise to Suntech, leading to the birth of China's largest solar cell production enterprises, a full range of financing and financial support services platform to strengthen Suntech, the perfect venture capital exit mechanism to achieve Suntech's overseas listing. "High-quality private enterprises to venture capital, is an investment model upgrade." Professor Unwin, director of the Institute of Economic Development, university, Jiangsu Province, said that in the early stage of private enterprise entrepreneurship, the leadership of Township Enterprises, the mode of operation and elements of the framework, mainly to fill the field of state-owned economic withdrawal, relying on labor-intensive, low-end export processing type to establish competitive advantage. The key to the two enterprises ' entrepreneurship and the promotion of Sunan model lies in the adjustment of management mentality and the change of capital structure. The venture capital means that the southern Jiangsu private enterprises have jumped out of operate and other traditional expansion patterns, and entered a new way of fission. She can not only provide impetus for the further integration and rapid development of traditional industries, but also provide financing for the development of new industries.