Wenzhou Private Enterprises, Forms Of Organization Development

With the formation and perfection of the market system, since Reformation-Opening of China, private enterprises have already been the main parts of our socialist market economy and been playing the important roles in the civil economy. Wen-zhou is a typical region where private enterprises develop on a large scale. Family enterprise and enterprise cluster form are two important characters of the enterprise organizations of Wen-zhou.Transaction cost theory indicates that the choice, change, development of enterprise organization lie in the reduction of transaction costs. Family enterprise is the main form of Wen-zhou's private enterprises at the initial stage. Family identity and Family relation make these enterprises not only save interior administrative costs, but also the exterior market transaction costs. But with the expansion of the enterprise's size, there are some problems to appear, such as the increase of management cost, agency cost and the defining cost of property right.With the expansion of market and the violence of competition, there appears the intermediate organization-enterprise cluster, which is a special enterprise organization in Wen-zhou. Family enterprise has the special function in reducing the transaction costs in the respects of institutional innovation, the exterior cooperation, the labor division, which promote the origination, expansion, evolution of enterprise cluster. However, the features of family determine the speculative behavior, the same product, the weak creation.It is necessary to change the enterprise organization in Wen-zhou. At present, Family enterprise is not sure to shift into modern enterprise system. Some closed family enterprise can change into opening family enterprise. Some family enterprises can transform into modern enterprises system. The enterprise clusters must promote to evolve into modern industrial cluster. Furthermore, the transformation from family enterprise into modern enterprise system is the premise for the formation of modern industrial cluster.