The Governance Restructuring Of Private Enterprises And The Role Of Government

With the rapid rise of the Chinese economy, private enterprises are developing rapidly and have gradually become absolute main power in Chinese economic development. That in a market economy with its transition system, guided by government’s positive role in the modernization of private enterprises to improve the corporate governance structure has important significance.This paper analyzes the problems of private enterprises in Zhejiang governance structure and its transformation, focusing on the transformation of the governance structure of the role of government. Through the dynamical analysis of the problem by external environment in which private enterprise and their own governance structure, to find a meeting point of micro-enterprises and macroeconomic policies, so as to promote Chinese private economy healthily, orderly and flourish.30 years of reform and opening up, China’s private economy from small to large, becoming China’s most dynamic economic growth pole, developing very rapidly and become an important part of China’s national economy and the socialist market economy basis, propped half of the national economy, to enhance China’s comprehensive national strength, made a great contribution for the sustained, stable and healthy development and remarkable achievements. It was the most dynamic part of China’s economy. But back to the history of the development of private enterprise, we can see a great number of repeat business "entrepreneurship, the rise and decline," the growth of the trilogy. According to statistics, about 150,000 private enterprises born, more than 10 million deaths each year in the Chinese private enterprises, while 60% of private enterprises from the establishment to bankrupt within five years,85% of private enterprises go bankrupt within 10 years, according to statistics, the average age of China’s private enterprises is only 2.9 years. Therefore, That how to establish appropriate governance structure for the development of private enterprises is the focus of sustainable development for private enterprises. Meanwhile, the government acts on the development of private enterprise governance structure, also has a significant impact on how the government to find and pinpoint positioning itself to play its due role in the development of private economy, it is essential to accelerate the healthy development of the private economy.Starting from the examples of the rapid development of the private economy in Zhejiang, through empirical analysis and comparative analysis to explore the following questions:First, the status of private enterprise development and influencing factors; Second, the analysis of government policies on the development of private enterprise governance restructuring role. Thirdly, with the experience of United States and Japan, to explore specific transition path to overcome the difficulties of private corporate governance structure.Combined with the analysis of specific cases in Zhejiang Province, the paper considers the role of government embodied in:on the one hand, to create a policy environment which conducive to macroeconomic restructuring and private enterprises development, private enterprises specifically including improving the market position of supply policies adapting to corporate life cycle to play the role of government, financial support for enterprises "listed" guidance, etc.; the other hand, to provide micro-enterprise restructuring and development of the private foundation, specifically including human resources and information support, technological support.Meanwhile, the paper also analyzes the existing problems and reasons. Compared to the rapid development of private enterprises in Zhejiang, the Government Role in Zhejiang is still far behind the development of private enterprises, the main problems are reflected in the following aspects:(a) the poor market order, unequal competitive conditions; (b) macro-management cross-departmental functions; (c) the absence of government functions exist, (d) the social service system has not been formed; (e) financing channels narrow, difficult financing issues remain unresolved; (f) heavy tax burden on private enterprise and other issues yet to be resolved.The causes of the problem, the paper believes there are three points:(a) the shackles of institutional, (b) cognitive bias, (c) the drive of the interests, which is the direct cause. Since the reform and opening up, through from "devolution of power" to local government and enterprises, through the establishment of a socialist market economic system and a series of reforms, the country promote private enterprise high-speed economic development. However, in the last 10 years, the market-oriented reform is almost at a standstill. This situation makes market monopoly problem no solution.