The Effects of Guanxi Categorie on Bank Credit

Financing is undoubtedly significant for the survival and development of private enterprises in China. In transitional economy, private enterprises, compared with state-owned enterprises or collective enterprises, are often difficult to get formal financial support in terms of credit and loan to overcome their liability of newness, so informal guanxi network plays an important role in enterprises' financing. In the light of social capital theory, this paper proposes a model about relationship types, bank credit, and private new venture performance, discussing how the two types of relationship influence bank loans characteristics and describing the relating significance for enterprises' performance.