Study On Expansion Of Chinese Private Enterprises

The government has made many policies to stimulate private economy since reform andopening up. Thus，private economy has gone through a rapid development while state-ownedeconomy still controls the lifeline of the national economy. In fact, private enterprises haveexceeded state-owned economy in many aspects, such as quantities, output, and totalassets, and so on.The share of private enterprises in the national fixed assets investment iseven above50percent. In a word, private enterprises have become the important part of thesocialist market economy. Besides, more and more people have realized that it is the privateenterprises that determine a steady development of Chinese economy in the further10or20years.This paper takes many methods to demonstrate how to develop private enterprises at thisstate of the socialist market economy, such as empirical analysis, normative analysis，quantitative analysis and qualitative analysis, and so on.The technical line followed by this paper is asking questions, building theoreticalframework, empirical analysis, and solving problems. This paper consists of eight chapters.The first chapter is the instruction about the research purposes and significance of this paper.The second chapter makes a summary of relative theories in this field. The next three chaptersdescribe the characteristics, environment and development strategies of private enterprises inChina. What’s more, they analyze the development mechanism of private entrepreneurs andthe interactions of private enterprises and their entrepreneurs. In the sixth chapter, this papertakes "Delong", one of the most famous and successful private enterprise in China as anexample. The seventh chapter gives several countermeasures about how to develop privateenterprises in a sustainable way. In the last chapter this paper reaches the conclusions anddeficiencies.The main conclusions drawn from this study are as follows：At first, the development of private enterprises is the result of the coordination ofenvironment and enterprises’ inner abilities. No enterprise can live without environment.Only those who can adjust to the changes of environment timely can survive and then takea chance to expand. At present, the development of private enterprises needs to adapt toour country socialist market economic development process. Besides, they also need topay close attention to our country’s political and economic system reform process.In fact, the ability to adapt to the changes of private enterprises comes from their inner，which is the result of many of the resources comprehensive effect. Constructing perfect corporate governance is the key point to construct a mechanism tomatch the environment and inner abilities. In Chinese private enterprises, it is theentrepreneur who takes the role of adapting to the changes of environment. Therefore, theuncertainty of the matching process between the environment and the inner abilities increases.This paper suggests that private enterprises need to construct a perfect corporate governanceto reduce the risk of one person have the final say.This paper suggests that Chinese private enterprises need to foster the crisis managementabilities, which can make the enterprise to develop even in a crisis. Compared with privateenterprises in developed countries, most private enterprises in China are facing the fact oflow survival rate. Even worse, many Chinese private enterprises bankrupted in a crisissuddenly. In a word, the ability to manage a crisis is a key part of private enterprises’development strategies."Original sin" has become the important problems that private enterprises of China needto pay attention to and solve.Private enterprises in the start-up stage, which own highertendency to opportunism and consistent with laws and regulations, if not resolutelyabandon that "original sin" management behavior, will be damaged deeply.