Start-Up Capital Structure and its Influencing Factors: A Case of Small and Medium-Sized Enterprises in China

Small and medium-sized enterprises (SMEs) make a significant contribution to the development of productivity of China. This paper aims to explore the start-up capital structure and its influencing factors in Chinese SMEs. The empirical results reveal that in the start-up stage start-up capital relies heavily on owners´ self-financing, lack of sufficient external finance. Results also suggest that the resulting structure of start-up capital for SMEs will be the consequence of a mixture of factors including internal and external environment factors. So the channels to solve the problem should be related to the factors.