Research On System Innovation Of Private Business In China

The private enterprise of our country, which came into being under the historical environment of semi-colonial and semi-feudal society , has survived difficultly and grown with an idiosyncratic system changes. Especially after new China has been founded, it experienced the process of system environmental changes from "allow to exist", "important part" to "essential and helpful to be supplementary" and enterprise system from "personal owner make" to "make in partnership system" develop to "Company makes" . Various kinds of non- institutionalized outside have emerged that have not already suited with demand for development of economy, politics and social environment of private economy now.The private economy of our country has made great contribution to GDP. As one of the most functional part of the socialist market economy, i t has a certain degree and scale. Also it has been highly confirmed fro m the height of productivity development in the 16th CPC Congress. Its growth needs more investment on not only material but also theory construction and system. The demand of system innovation for private enterprise is appearing for the system changes demand emerging in interests that private economy can't get under the current regulations. That is to say private economy always tries hard under restrains and seek to confirm that is expected to arrange for favorable system. Because the unreasonable system increases and consumes the huge cost in enterprise's economic activity, this essay applies to the theory of new system economics to analyze the evolution that the market main body takes place during the process of finding the new demand and new useful resource. Around reducing trade cost it also analyses to improve private enterprise system environment and set up science rational modern enterprise system to develop the potentiality of private economy and make more contribution for the economic construction of our country.