The private economy plays an important role in socialist market economy. Private enterprises are the backbones of the private economy; they play an important role in optimizing the economic structure; and promoting system innovation, technological innovation, nurturing entrepreneurs’ growth. In recent years, although the private enterprises have the advantage of obtaining and maintaining competition, it also faces serious challenge. The initial advantage of private enterprises has gradually weakened, including policy, information and price. The competitive advantage of technology innovation cycle is also increasingly shortened; it has caused extensive concern of private entrepreneurs that how private enterprises can gain sustainable competitive advantage in the fierce competition. Over the years, the private economy of Chengdu development rapidly, and private small and medium-sized enterprise’ scale expands unceasingly, which become the most active force in the city’s economic development, make important contribution to enhance the vitality of the market economy, security the social employment. But most of the management idea, the service way still lag behind the development of market demand, their industry form has not been able to meet the requirements of market competition, and even has affected the survival of enterprises, they will be eliminated by the market if not transform. Therefore, only by strengthening enterprise’s core competitiveness, accelerating the transformation and upgrading, private enterprises can achieve out of trouble.To accelerate the development of small and medium-sized private enterprises in Chengdu, and enhance the city’s economic vitality and competitiveness, this paper does some research about the development of small and medium-sized private enterprise, analysis the difficulties of transformation. Thorough the analyst, I give some countermeasures and suggestions, hope it will be helpful to the transformation and upgrading of Chengdu’ private enterprises. This paper consists of six chapters: The first chapter is mainly about the research background and significance of the selected topic as transformation and upgrading of private enterprises in Chengdu, and briefly introduce the research methods and thesis framework; The second chapter is about the analysis of the theoretical foundation, and briefly summarizes the research on private enterprises’ present situation domestic and foreign; The third chapter is about the summary of current situation of the private enterprise’ development in Chengdu, the analyze mainly through literature collection and survey results; The fourth chapter is based on the statistics of questionnaire and interview to the enterprise, to analyze the challenge for the transformation and upgrading of private enterprises, and briefly expounds the opportunity of private enterprises in transformation and upgrading; The fifth chapter is to summarize the successful experience and the enlightenment through three cases of transformation and upgrading of private enterprises; The sixth chapter puts forward some countermeasures and suggestions from two levels of government and the enterprises. |