Financing for New Businesses in Relationship-oriented and Rule-based Financial Systems

One of the major classifications of the economy is division into the real and financial sectors. Being at service of financial sector than the real sector of economy is the basic principles of this classification.Financial systems are usually known with financial markets,institutions, and instruments that they are working on financial laws.What the real economy and financial sector developments in the late decades of the twentieth century and early twenty-first century is such that coordinating these two sectors is considered as one of the main concerns of economic policy makers. Path of economic growth from agriculture to industry-based economy and now towards the knowledge-based economy will require financial institutions provide financial services to facilitate such activities appropriately. Policy makers acknowledged Iran's economy has taken step toward the development of knowledge-based economy in the implementation of the fourth and fifth five-year development plans.Financial systems are divided into two systems: relationshiporiented (Bank-Oriented) and rule-based (stock-based). Due to the legal and cultural economic infrastructures, optimal combination of these two systems is required the financial systems to perform their own duties better than the real sector of the economy. The paper explains the relationship between the real and financial sectors of the economy and describes financial sector duties and shows that relationship-oriented and rule-bused financial systems have responded to the question of financing new businesses separately. Venture capital funds are the main entity of rule-based systems but we see the majorrole of development banks in the relationship-oriented financial systems.