| China has been undergoing the institutional changes from the planned economy to socialist market economy since the end of 1970s after a long period of planned economic system. This, correspondingly, initiates the change of the Chinese society so as to give rise to the institutional change of economic development. The private enterprise entrepreneurs are gradually growing into an essential element in this process. From the self-employed entrepreneurs at the beginning of the reform and opening up policies to the recognition of the legitimacy of the private enterprises, the private enterprises have become one of the principal parts of the Chinese socialist market economy. At the same time, the private entrepreneurs have also formed a new type of social class against the background of institutional change. With intensifying this change, new changes begin taking place, namely, the changes from family management to specialized management, from centralized to decentralized and from traditional to modern. Correspondingly, the importance of market choosing and price-fixing by, and professionalism and qualification of private entrepreneurs is becoming increasingly eminent. Facing the challenges from the development of market economy and knowledge economy, and China's entry to WTO as well as the economic globalization, the private enterprises are confronted with the problem of starting their further development from scratch. Under this circumstances, it gives rise to morenew problems about how the private entrepreneurs will develop, what their characteristics will be, in what directions they should go and what objectives they will aim at and how to contribute to their healthy and regular development. All these are the essential problems to be thoroughly handled in the study of the theory of the socialist economy. This paper results from pondering of and study on these problems. By the retrospect of the growth of entrepreneurs, home and abroad, and through the comprehensive utilization of methods such as institutional, comparative, historical, logical, systematical and economic sociology analysis, the author deals with the growth issues of the private entrepreneurs during the institutional change and social transformation period hi China.The growth of Chinese private entrepreneurs goes abreast with the step-by-step reform in China and results from the economic restructuring gradually. The private entrepreneurs have experienced four stages in their formation in what follows aspects ?the collective cadres under the planned economy system, the upstarts at the beginning of transformation, then producer, and operators in the middle of the transformation. In nature, they are not capitalists but a new social class in transformation. They play an important role in socialist economic construction and shoulder the responsibility of propelling the growth of China's productive forces. Therefore, it is necessary to study them in theory so as to give them a full play in practice. As for the characteristics, the private entrepreneurs are a new-bora social class. From the perspective of distribution system, their considerable income embodies the principle of "to each according to elements" of the socialist market economy. As for its function, this class is a power source for the economic development. It is the fifth type in the entrepreneurs' family in China from the perspective of its existence. As far as its tie with the socialist system, the presence and development of the private entrepreneurs does not disagree with the counterparts of the socialist market. From political position, they go aside with the Chinese Communist Party and uphold the belief of the socialist system, and they are not the opposite sides of the Party and the Socialism. Since the private economygrows up in non-regulated surroundings with a non-regulated mechanism, in accordance with its present situation in China, strengthening of the market mechanism, educational mechanism, external forming mechanism, coordinating mechanism and security mechan...
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