Analysis Of Private Sector Incentives

As one important component of China's national economy, private enterprises have made great contributions to the development of national economy,the increase of GDP and the improvement of people's living standard. At the beginning of 2004, the National People's Congress amended the Constitution, which will be supporting, encouraging and inducting the development of the non-public section in which private-owned enterprises were included. It shows that more free environments and more favourable policies will be applied to the non-public section including the private enterprises. Therefore, it's quite sure that the private enterprises will develop greatly in this new century. At present, the management of labour power is one main inner factor of restricting the development of private enterprises or stock companies. It's necessary to construct a scientific encouragement system in order to improve the whole management of labour power. There are many theoretical studies on it for the moment, but little compositive encouragement system involved. So the study of private enterprises' encouragement system is of certain academic and realistic meaning. This paper tries to analyse it thoroughly through its demonstration, influence factors, construction and supporting system.