A Research About The Entrepreneur Mechanism Of Private Enterprises In The Pearl River Delta

The economy of The Pearl River Delta has gotten outstanding progress for more than 20 years since China started to reform and open in 1978. Behind such excellent achievement are thousands of various enterprises in this region. Because here is an exemplar for the economic development of all other Chinese region, theoretical cycles and decision-makers of government are taking focus on the research that compare the state of economy and enterprises of The Pearl River Delta with other regions in China. This article is participating into this discussion, but it will comprehend the entrepreneur mechanism of the private enterprises in this region mainly from the point of view of entrepreneur activity. We will theoretically and experientially analyze the advantage and disadvantage of the entrepreneur mechanism of the private enterprises in this region. Except for this, the paper will take account of the transitional process of such mechanism.Firstly, we develop a theoretical framework about entrepreneur activity and entrepreneur mechanism. This part illustrates that although many theoretical and experiential researches implied that the rights mechanism inside firm was meaningful for efficiency. But the analyses about such mechanism existing literatures did were mainly based on only one of the economic choosing activities: the decision-making under the condition of complete information or incomplete information but with exact probability distribution. Despite some exceptions, the choosing behaviors under the condition of incomplete information even completely uncertainty has not always been included into the analytical scope of mainstream economics. The mainstream theories about enterprise and entrepreneur has not systematically studied such special decision-making and its meaning for entrepreneur mechanism either. This paper will define the decision-making under incomplete information as entrepreneur activity. On this foundation, we will analyze the essence of such activity and its meaning and effects for the allocation mechanism of rights inside firm. This paper deeplyresearches the natures of entrepreneur activity different from general exact optimization, and the relationship among such activity and incomplete market, innovative profit, entrepreneur mechanism. It shows that incomplete market is necessary condition for doing entrepreneur activity, and the latter is in turn the one of reasons that result in the incompleteness of market. Innovative profit is the impetus and consequence of entrepreneur activity. Besides, the especial nature of the activity is the one of primary factors that bring about market choosing the more effective entrepreneur mechanism like "capital hire labor".Based on the theoretical analysis, another half part of this paper turns its attention to the problem about entrepreneur mechanism of private firm in The Pearl River Delta. We will use the main viewpoint last part offers to analyze it. From the point of view of entrepreneur activity, the paper deeply studies five characteristics of the private firms in The Pearl River Delta: most of enterprises are private like "capital hire labor"; the process of transition of rights institution in this region is peculiar; most of enterprises are controlled and managed by family; the institution of corporate governance and management decision-making are not enough perfect; entrepreneur plays a key role in the industry congregate here. At the same time, this article researches the problem about making of entrepreneurial ability that's great meaningful for the surviving and development of the private enterprises in The Pearl River Delta. This part gives some general ways and courses through which the entrepreneurial ability is made inside and outside. The entrepreneur spirit relevant to entrepreneurial ability will be discussed too here. Except for this, we select three cases relevant to the private enterprises in the region to do further research. The analysis is helpful for more deeply understanding the entrepreneur mechanism of the firms here. Of course, to some degree the practical analysis and case study in this part will in turn offer some experiential support for the main viewpoints the theoretical part of this paper presents.