The Impact Of The Reform Of Industrial And Commercial Registration System On Private Enterprises

Private enterprises in China have had huge successes in their development in recent years.However, the business administration system, especially the commercial registration system has a long way falling behind. In year 2013, the 12th People’s Congress Meeting decided to reform this system and stimulate a further development of the private economy. The goal of this thesis is to discuss in detail the consequences of this on-going reform and its positive and negative influences on the private enterprises in China. The discussion is based on both theories in public management and real data analysis.In this thesis, by several research methods such as literature reviewing, data exploratory analysis and statistical hypothesis testing, the author studies the procedures of the commercial registration reform and its impact on private enterprises in several aspects. Quantitative evaluations on the benefits of the reform are made. The finding reveals that the reformof registration has promoted small and medium enterprises, and the tertiary industry, respectively.Firstly, by a literature review, a basic scheme of the registration system is listed, and the necessity of reform is stated. Second, based on a country-level dataset from Jan 2011 to June 2015, an exploratory analysis is performed. To alleviate the effects of confounding factors, such as economic and politic environments that may affect the growth of private enterprises, we use a method based on the quasi-experiment, in which the time range is divided into 3 parts with equal time length. The increase of newly-registered enterprises their capitals are compared. A significant increase can be observed after the beginning of the reform. This shows positive effects of the new reform of the business administration system.Moreover, there are some non-ignorable problems rising in the reform process. By applying theories of public management, the author finds that the deficiencies of corresponding statutes, willing to serve private enterprises, coordination among different departments and supervisionmechanismare main causes of the inefficiency to further developments of private enterprises. Experiences from other countries are suggested for references. In the end, the author concludes with several proposals to improve the reform of the commercial registration system.