Private Sector Development Issues And Countermeasures

The development of private enterprises has been of vital importance in China's economic reform , which has improved national economy and social situations .At the times when state-owned enterprises are enduring long-term loss and forced into strategic adjustment , and when collective enterprises are attaching less significance in its contribution to national economy due to its comparatively poor stamina , the mushrooming private enterprises are playing an essential role in the successive and stable development of national economy . Their existence and development are beneficial to the growth of GDP and the progress of social technology ,their investment is beneficial to China's " Western Exploration" and it is one of essential supplementary financing methods in national economy . Moreover ,offering large quantities of work chances , the private enterprises which has been developing continuously have relieved the social problems caused by unemployment . Those all definitely show that private enterprises have become an important part of socialist economy in China .However , the development of private enterprises doesn't go well all the time . In the course of the development of private enterprises , the restriction from the systems in government departments still exists . Firstly, government authorities feel difficult to adjust completely their thinking ways , behavior rules and laws in short terms , so it is impossible to give private enterprises a system which accords with market economic rule "Openness , Equity , Honesty" so that private enterprises , compared with national enterprises and foreign capital enterprises , stand in the unfair position in the market competition . Secondly .discrimination in legal terms .which causes the result that the nation lacks the fair protection to private possession compared with public possession andhence the harm to the benefit of private enterprises .Thirdly , the policy accomplished according to the current financial systems does harms to the development of private enterprises , so it is extremely difficult for private enterprises to get funds to expand the producing through allowable channel . Finally , the present situation of the enterprises'development restricts the development of private enterprises so that it is difficult for private enterprises to develop in such fields as petrochem .telecom .aviation .foreign trade .banking .security exchange , insurance and so on .Those restrictions are pulling legs of the private enterprises for their development .There are absolutely some, fatal "obstacles" in the development of these enterprises .Quite a few of the enterprises tend to fall into financing errors and make themselves pluralistic blankly when time is improper . In management, such problems are the major factors which shorten the span of enterprises as innate deficiency of family enterprises in rough management , lack of knowledge-based management , weakened research system .deficiency in core competition and confusion in financial management which result in a decrease in profit rates .How can a private enterprise become vivid in the sustainable development .On one hand , in accordance with the principle of "Openness .Equity .Honesty" , government authorities should adjust the goals of policies and systems .convert their functions .weaken the administrative interference and start an impartial taxation system , financial system and financial market permission system so as to maintain the role of private enterprises in China's economy , while on the other hand , as an economic existence , the private-owned enterprise should pay attention to adjusting industrial structures , clarify its industrial orientation ,focus on the main industry , carry on a business strategy centered on specialization , carry out industrialized productionstandards .quicken the pace in hi-tech industrialization .break through the difference between the operation right and property right , adjust structures of human resources and establish a scientific business manage...