Study Of The Intrinsic Factors That Restrict The Development Of Private Economy

Private economy which shares the largest proportion of the total number of Chinese enterprises, distributes most widely and involves the most industries, has achieved great progress after more than twenty years' development. It plays a significant role in promoting the position of private economy as an important part of our national economy. Privately owned enterprises (POEs) have already earned high reputation and popularity both at home and abroad. However, on a whole, most POEs developed undesirably, which results from backward technology, inefficient management, lack of capital and unreliable business credit.Based on the great changes that have taken place in the objective environment, in which POEs come into being and grow up, and according to the specific situation in different stages of POES'development, this thesis analyzes the main intrinsic factors that restrict the development of the scale of private economy, from the aspects of enterprise system, human resources, construction of enterprise culture and so on.Familial management, as the only management mode for private economy, has been always criticized during these years. The idea that familial company can't develop and the fact that POEs usually can't escape from the familial management mode, once made private owners puzzled and frustrated. In fact, there is no paradox between familial management and building up modern enterprise system. Safe and smooth transition from familial management to modernized management is the ideal way to realize scale of private economy.Therefore, the process of realizing scale of private economy is actually the process of combining familial management with modern management mode. During this process, we should not only introduce modernized enterprise system fit for modern enterprises to develop gradually and persistently, but also affirm the important effect of familial management in the initial stage of POEs development. Even during the establishment of scale of private economy, we still can reserve its positive part and discard the negative part that cumbers the development of the enterprises before the complete establishment of modernized enterprise system.This thesis, guided by dialectical materialism and the economic theory of constructing socialism with Chinese characteristics proposed by Deng Xiaoping, makes an analysis from the aspects of internal factors, such as system, human resources and enterprise culture, and tries to explore the main reasons which hold back the development of private economy, which can help to speed up the establishment of modernized enterprise system.