The Formation Of Private Enterprises And Its Credibility In China

Discussing the problem in the development of private enterprises has a significant meaning both theoretically and practically. Private enterprises have become a principle part in market economy and have an indispensable function. The task of developing economy in our country is very tough due to the worldwide fierce competition. In the background of revitalizing the state-on industrial base in the Northeast, further research on how to develop private sector has a special meaning.Among that factors that disturb the smooth development of private enterprises, credibility is the most important one. At present, though there are many discussions about this problem, few of them have used institution economics and sociology from the angle of the formation of private enterprises as this article has done.The research on the credibility of private enterprises should base on the right theory. A deep study of related researches done by foreign and domestic scholars provides me a good theoretic foundation to write this article. There is a long history about the ideology of credibility in the western society with an abundant and comprehensive content. We can find relevant discussions in a lot of subjects, such as Contracted Ethics, Theory of contemporary bourgeois rights, Commercial Ethics, Law, Western Contemporary Sociology, and New Institution Economics, they all have a scientific value in elaborating credibility. Especially, the innovative achievement of Marxism classic writer has stated the core value of credibility, that is, credibility is the law of economy, it later translates into ethic nature. This reveals that private enterprises should perform their credibility in the height of the principle of economy. There is a profound analysis in the theory of Contemporary Enterprise from the school of new institution economics, and it says the formation of enterprises can be attributed to the long-term contract formed by individual owners of different requisite during the trade-off in market place, therefore enterprises are the united outcome of a series of contracts. In order to save the cost of trade, develop the internal division of labour, and improve the efficiency of specialized production, enterprises should reinforce their motivation for profitability, meanwhile optimise the institutional arrangement, in this way, they can build the moral basis that contracts could fulfil, to keep the promise made by different parties to perform their obligations. Thus the opulent and comprehensive nature of enterprise has decided that enterprises have a formulation economically and legitimately, they also have an ethic-based formulation. Only in this way, can they gain a stable base for long-term development. The credibility of private enterprises has become an important part of theory discussion since the reform of economy with the development of our national economy, and their theoretic outcome also constitutes the base of this research.I have analysed the credibility problem of private enterprises in a thoughtful way. In the premises of the study and application of sociology and economics, I have put forward to discuss this problem from the angle of the formation of private enterprises. The truth of the dependence of the ways institutions evolve in institution economics has been fully approved and applied to the analysis of various social problems. There are uniqueness and complexity in the formation of private enterprises in our country, many of them are related to the problem of credibility due to some intrinsic connection as we discovered. These are reality that we should face up-straight in analysing the credibility of private enterprises, so it is where the root of the problem lies. The internal connections between them provide a necessary path in the analysis. By distinguishing the pros and cons in the connections, solidifying the positive part, and eliminating the negative part, we can draw an accountable, transparent and reasonable conclusion. In the formation of private enterprises, they can be divi...