Research On Selecting Sustained Growth Strategy For Private Enterprise In China

During the past 20 years, private economy has become a major channel for China's employment and re-employment as the country deepens its reform and opening-up policy, and the private enterprise has made a remarkable achievement. The private enterprises have contributed much to the progress of the national economy and have stimulated the domestic market. According to a survey conducted by the Ministry of Labor and Social Security in 66 cities last year, around two thirds of workers laid-off by state-owned corporation were re-employed in private corporations. The development of the private economy in turn has boosted the city's economic reform. Given the fact that private sectors are taking an increasingly important position in the national economy, it is reasonable to say that maintaining the current momentum of private enterprises will determine the growth of the Chinese economy in the next century.There are four chapters in this paper.In Chapter one, the paper instructs the background & signification of research, the general exist situation of private enterprise and research content.In Chapter two, the paper explains the meaning of corporation lifecycle at first, and then instructs the theory of Corporation Lifecycle of an American expert named Ichak Adizes and an Chinese expert named Chen Jiagui. It also draws the correspondingly charts and compares both them. By mean of theory analysis, the paper itself puts forward a method how to compartmentalize the enterprise lifecycle and draws a chart too. They are five chases: Infant, Go-Go, Adolescence, Prime and Bureaucracy. On the side, the paper describes the characters & risk faced in all chases and instructs how to determinant of corporation lifecycle basically.Based on above discuss, the paper puts forward itself opinions on how to select their strategy according to the characters of each chase.How to actualize their strategy for private enterprise is very considerable. If they want to achieve sustained growth after selecting their strategy, the private enterprise must innovate constantly from structure to management, from technologyto enterprise culture. Private companies must also increasingly pay attention to regulating its operation and building credibility. At the same time* the government must boost to develop a mature market economy, allow private companies to dabble in infrastructure and public welfare projects, where they were ruled out in the past. It must also pledge to treat private companies equally with other enterprises of the public ownership in loan granting, financial arrangement, taxation est. The government must also guide them.We can believe that after the Third Plenum of the 16th Central Committee of the Communist Party of China (CPC) in last mid October, the stumbling blocks, which impeded the growth of private businesses, will be gradually removed.