Study On The Cluster Growth Of Private Enterprises

Since the reform and opening-up of China twenty years ago, China's economy has undergone an ongoing high-speed growth. However, all kinds of booming private enterprises, instead of traditional large enterprises or state-owned enterprises, became the primary force contributing to both the substantial economy growth as well as China's economy development.They have played a positive, indispensable role in creating job opportunities, developing production, increasing market supply, verifying economy, exporting, increasing revenue, restructuring economy, and promoting stated-ownered economy reform.However, a tough reality looms high behind overall rapid development of private enterprises. It is not uncommon that short-lived exemplary enterprises conspicuously outnumber excellent ones with longevity. What are the underlying reasons? How to tackle the "short-live" phenomena of private enterprises and increase their viability in the long run? This thesis examines the problems from a new perspective by delving into the intra-enterprises relationship as well as the interaction between enterprises and their environments. The research leads to a conclusion that the key to sustainable development of private enterprises relies in the cluster growth of those entities, which must be realized through a special organizational form that is based on specialization and characterized with competition and cooperation.Based on a synthesis of abundant literature, classical theory on cluster enterprise and its economic rationale is introduced, and the cluster enterprise theory is utilized to analyze the improvement of the essential elements for cluster growth of private enterprises. Meanwhile, with a summary of the current status of Chinese cluster enterprises, their characteristics and an ideal development model, limitations of enterprise cluster development are put forward, and virtual cluster-a new trend of its development is proposed as a solution.