A Study On Present Condition And Countermeasure Of Private Enterprise In Hebei Province

Since the Third Plenary Session of the 11th Party Central Committee of the summary, private enterprise has become an important part of economic structure in China, and gave rise to some change in both economy and society in the past twenty years. State-owned business enterprise goes on suffering a loss and fails to find a turning-point, thus having to make strategic adjustment. However, private enterprise turned up as a black horse and its rapid development contributed a lot to the stable and persistent development of economy in China. It's existence and development redound to the increase of GDP and the development of social technology. It's investment lends itself to the great exploitation of west in China, and the full-scale construction of well-to-do society, and solution to singleness of investment principal body. It also provides opportunities for employment and greatly relieves the contradiction brought by unemployment. These above show the unshakable status of private enterprise in socialist market economy in China.Of course, private enterprise in Hebei province does not go very successfully. In it's process of development, there is still restriction coming from system of government. The traditional prejudice rendered the private enterprise in unequal status in market competition with state-owned and foreign enterprise. The imperfection of law makes the private enterprise fail to get enough protection as state-owned enterprise. The policy carried out by fiance mechanism goes against the development of private enterprise, so it is rather difficult for private enterprise to get bankroll for it's enlarged reproduction. There is also restriction to entry of some industries, such petrifaction, telecom, aviation, foreign trade, bank, negotiable securities, insurance and so on. These factors block the development of private enterprise.There are also some fatal defections in the development of private enterprise. Due to lack of scientific decision-making, many private enterprises are inclined to make wrong investment and adopt familial management. Private enterprise ignores knowledge management and doesn't have effective research and invention center, then fails to get the inside track in competition. Besides, private enterprise is also short of consummate fiance management and leads to high cost and low profit. These are the main factors of the ephemerality of private enterprise.In the process of the investigation, I saw a striking figure: the life expectancy of private enterprise is 2.9 years. What is the reason? It's believed that strategic error causes it. Then how to keep the vital force of private enterprise? It is necessary for government to adjust tropism of policy and system in term of principles: equity, impartiality, publicity. The government should convert functions to reduce administrative intervention, carry out impartial scot system and on in order to build an ideal environment of system. As an economic entity, private enterprise should pay attention to the adjustment of industry...