A Study On The Impact Of China's Business Environment On The Performance Of Private Enterprises

With the development and improvement of the socialist market economic system,private economy is playing an increasingly important role in the high-quality development of China's economy.Private enterprises have made important contributions to driving economic growth,maintaining price stability,absorbing employment and maintaining investment vitality.At present,China's economic development is facing a complicated internal and external situation.Economic and trade frictions from the United States and other countries have not been significantly alleviated,and mutant strains of COVID-19 continue to cause localized distress to China.The economic cycle has also entered a stage where demand contraction,supply shock and weakening expectations coexist.This requires all types of Chinese enterprises to give priority to stability and seek progress while maintaining stability,then achieve continuous development of market players by stimulating endogenous growth momentum.Furthermore,they should promote the prevention and resolution of major risks by enhancing the anti-risk ability of micro subjects and ensure employment and basic living standards by protecting market players.However,compared with other ownership enterprises,private enterprises have some inherent disadvantages in development.Their performance is more sensitive to the external institutional environment,and they need to complete the transaction and investment of intermediate goods,production factors and public goods with higher efficiency and better combination.In this context,how to promote the performance of private enterprises by building a convenient,legal and international business environment? In particular,as an external input,how can the business environment be absorbed and utilized by private enterprises to the greatest extent? How to remove the restrictive factors in the transmission process from business environment to performance? It has important research value and significance to answer these questions theoretically and empirically and promote the performance improvement of private enterprises.This paper mainly includes the following research contents:(1)This paper established China's business environment index and private enterprise performance evaluation system,calculated the results of the comprehensive index and sub-index,and conducted horizontal and vertical comparison according to the region and time,so as to get the basic characteristics of the business environment and private enterprise performance change facts.(2)Based on the CES production function of enterprises,a mathematical model of the impact of business environment on enterprise decisionmaking was constructed.Moreover,combined with the main characteristics of private enterprises,the transmission mechanism of the change of enterprise decision-making resulting in the change of performance was deduced,and a theoretical hypothesis to be tested was formed.(3)This paper empirically tested the overall effect of business environment on the performance of private enterprises,and observed the diminishing marginal utility trend of business environment as institutional input,namely,the threshold effect in the process of business environment enhancing the performance of private enterprises.(4)This paper empirically examined the first mediating mechanism of business environment affecting the performance of private enterprises--the optimization of supply chain relationship,and verified the moderating effect of technological capability on the mediating mechanism.(5)This paper empirically examined the second mediating mechanism of the business environment affecting the performance of private enterprises--the weakening of labor price distortion,and verified the moderating effect of technological capability on the mediating mechanism.(6)This paper empirically examined the third mediating mechanism of the business environment affecting the performance of private enterprises--the slowdown of public goods' oversupply,and verified the moderating effect of technological capability on the mediating mechanism.Through theoretical and empirical research,this paper draws the following conclusions:(1)Improving the business environment can significantly improve the performance of private enterprises,especially their profitability.(2)From the segmentation index of business environment,the improvement of profitability of private enterprises mainly comes from the contribution of market environment,government environment,legal environment and credit environment,while the impact of internationalization environment is weaker.(3)When the business environment index is too high,its positive effect on the profitability of private enterprises will become less obvious,which requires relatively developed regions to update and refine the evaluation criteria of business environment,and pursue connotative development of business environment.(4)The law and credit environment can improve the profitability of private enterprises by reducing the concentration of supply chain,but the indirect effect is obviously weakened with the enhancement of enterprises' technical ability.(5)The government environment can improve the profitability of private enterprises by reversing the positive distortion of labor price,but it is negatively moderated by the technological capability of enterprises.(6)The market environment can promote the profitability of private enterprises by restraining the excessive growth of public goods supply,but it is also negatively regulated by the technological ability of enterprises.(7)Due to the historical continuity of institution,the improvement of the business environment may not be achieved overnight.Thus for the provinces where the business environment will not catch up with developed areas in the short term,docking the national strategy,increasing the supply of technical elements and enhancing the radiation of innovation driving force to private enterprises are important and feasible paths to promote the highquality development of its private economy.The research conclusions of this paper have important policy reference significance for China to deepen the reform of commercial institution,realize the modernization of economic governance capacity and promote the efficiency reform of service market players.On the one hand,China should continue to promote the improvement of the business environment,further increase the weight of the regional business environment in the performance evaluation of local governments,and create a fair,efficient,coordinated and shared enterprise competition and cooperation ecosystem.On the other hand,we should pay attention to the cost and benefit of improving the business environment,and pay attention to the implementation of the business environment at the micro level.By smoothing the domestic and regional circulation systems,we should reverse the distortion of the allocation of production factors in the past,and enhance the synergy and mutual promotion between the development of private economy and the improvement of the business environment.The research of this paper breaks through the traditional perspective of studying business environment and the assumption of zero-friction economics.It adopts the basic framework of new institutional economics to analyze the whole process of the influence of transaction links of different inputs on enterprise performance,making a marginal contribution to the development of relevant theories.