Application Of Corporate Governance For Small And Medium-Sized Private Enterprises

Corporate governance tries to handle the problem of benefit balance among all stake-holders of an enterprise. As an important part of the enterprise's core capacity, it also provides a solution to satisfy the needs of inner and outer stake-holders. Good governance promises a reasonable decision-making system and well-operation, it's the main accelerate and core competitive power for the development of the organization. As a very important part for the development of the national economic, small and medium-sized private enterprises are giving a tremendous donation in employment, technology innovation and market vitality of the whole county. Development of management and complex capacity of small and medium-sized private enterprise will surely promote the growth of them. The establishment and development of corporate governance is a good solution to cultivate the core competitive power of small and medium-sized private enterprises.Corporate governance is a popular topic in different researches fields among economics, management, financing and laws. There are special methods and theories on this issue in different fields. The principles, rules and codes are developed from different points of view to guide the practice of corporate governance. The main theories covered the following topics:modern organization of enterprises, agency, property, contract, agreement, investment and outcome, stakeholder model and life cycle of enterprises.Most small and medium-sized private enterprises are family enterprises. It's important to handle the crises occurred in both start and growth period by enhancing the inner ability through application of the corporate governance theories and tools. And the forward from family enterprise to modern organized enterprises is feasible to solve the problem of family disputes, inner and outer governance of enterprises.The application of corporate governance is not widely spread as for its high requirements for the management group of enterprises, at present it was mainly taken by small technological and knowledge-oriented enterprises. Participation of employees is the key for success of inner governance and the promotion of government section and think tank is an important element for success of outer governance.