Life Cycle Of Private Entrepreneurship

Private enterprises have become an important part of China’s economy and madetremendous contributions to the domestic economic growth. Some of them becomebigger and stronger，while others are just short-lived. The study on the developmentand decline of private enterprises should focus on the important role that privateentrepreneurship plays as well as the objective material conditions of production.Chapter one analyzes the concept of entrepreneur, entrepreneurship developmentand the typical model of enterprise life cycle theory. It divides the stages of enterpriselife cycle and summaries the concepts of private entrepreneurs and privateentrepreneurship. The enterprise life cycle is divided into four stages, that is, start-upperiod, growth period, mature period and decline period. The existing theories ofentrepreneur are divided into three schools：the classical school, market equilibriumschool and market disequilibrium school. On this basis, the paper defines the privateentrepreneurs as innovators and leaders who guide and manage private enterprises tolook for opportunities, demands and changes in the market competition in order toachieve the increment of economic benefit, take all the risks and make final decisions.The spirit of entrepreneurs is mainly categorized into two factions: one is definedaccording to the explicit characteristics of entrepreneur spirit; the other is based on theformation and influence of culture on the value of entrepreneurs. The paper points outthat the spirit of entrepreneurs is influenced by the environment of Chinese historyand culture and refers to the thought and the will of cultural quality formed in thebusiness activities.The second chapter analyzes the internal and external factors influencing theformation of the spirit of entrepreneurs and the effects of the spirit of entrepreneurs onthe enterprise culture and economy. Comparing the Chinese entrepreneur spirit withthat of America, Japan and Jewish, the analysis of "doctrine of the mean" ofConfucian school results in the "inherent problems" in entrepreneur risk, competitionand cooperation spirits. The "inaction" blocks the aggressive competitive spirit and hinders the cultural quality that modern entrepreneurs need. The rigid thought oflegalized management of Legalist School conforms to the profit-orientedrequirements of modern entrepreneurs and to some extent, contributes to thegeneration of modern entrepreneur spirit. The institutional environment of "thinkingof official position" and the different regional characteristics between the North andthe South influence the formation of private entrepreneur spirit in China. Manyfactors like gender, age, education, religion, family background, personality andhobbies, etc. shape the different spirit of individual private entrepreneurs. Thetraditional spirit of private entrepreneur of our country is embodies in fouraspects—harmony, trust, kindheartedness and loyalty. The spirit of entrepreneursplays a decisive role in the formation of the entrepreneur development and corporateculture and the corporate culture words as the extension of the spirit of entrepreneurs.The economic growth is effected by the innovation spirit of entrepreneurship, and theprivate entrepreneurs are the important human capital for the development of privateenterprises.The third chapter studies the different roles that private entrepreneurs play in thedifferent enterprise life cycles. In the initial period, they are entrepreneurs. In thegrowth period, they are operators. In the mature period, they are managers. In thedecline period, they are beginners. Innovative spirit, adventurous spirit,professionalism, team spirit, the spirit of integrity and competitive spirit will changeaccordingly in different cycles. Integrity, dedication and spirit of cooperation runthrough the enterprise development. In the start-up period, adventure of theentrepreneurial spirit is more powerful. In the enterprise growth period, the innovationof entrepreneurial spirit becomes the main spiritual force to support the developmentof enterprises and entrepreneurs should achieve the shift from intuitive managementto position management. In the mature period of companies, entrepreneurs pay moreattention to the market and competitors and strengthen the competitive spirit.Entrepreneurs should achieve the change from the competitive spirit to thecooperation spirit and corporate structure should be changed from the vertical type to lateral type. The recession period, the innovation spirit significantly weakens.Entrepreneurs would like to avoid risks, and the spirit of dedication and self-restraintare gradually disappearing.The fourth chapter studies the shortcomings of private entrepreneurship and findscountermeasures. In market environment, the lack of constraints of entrepreneurshipleads to the widespread phenomenon of imitation, diffuse malignant competition,decline of commercial moral, and the reduction of social responsibility. Privateentrepreneurs are single and dominant. In response to these phenomena, measures aremade from three levels of government, society, and entrepreneurs to promote theentrepreneurship. For instance, the government should change from the manager toserver, provide transparent, standardized, legal and fair market environment, andestablish and improve the entrepreneurial market. Society should guide socialatmosphere and respect entrepreneurs. Entrepreneurs should focus on improvingself-cultivation and professionalism.The conclusion summarizes the main contents of the article and points out theinadequacies of the study and the prospects for future research.