Study On The Privatization Of State-owned Small And Medium-sized Enterprises In China

Since the 90's, the privatization tide has raised, it has become strategic choice which the countries all over the world adopted to adjust economy. At the same time, it also has accumulated the experience for implementing in our country; because the rapid development of privately operated economical, the gathering of folk wealth , and the private entrepreneur's start emerging, in our country , all these have offered a richer microscopic foundation for privatization of state-owned small and medium-sized enterprises (SMEs) . Since the 15th National Congress of the Communist Party of China proposed opening up and runing SMEs, and made use of reorganize , unite , confirm , lease , contract system , share cooperation and selling etc, to improve the reform of state-owned SMEs in the system of ownership. There are many places begin practicing, such as Wen Zhou in Zhejiang, Zhucheng in Shandong, the southern of Jiangsu province. They taked the property right system reform as the breach, encouraged the staff and the privately operated enterprise to participate in privatization, privatization has been implemented possibly in our country. Under this background, this paper study on the privatization of state-owned SMEs.Regardless of Occident which have highly developed market economy, or like our country in which the state-owned economy is distributed widely and market economic system is not perfect. Privatization is significant for the reform of state-owned SMEs , even the whole country . Privatization helps to improve the state finance and promote national administrative structure reform; Help enterprises to strengthen management ability and competitive power; Help to raise the worker's income; also favorable to industrial structure adjustment.This paper has six chapters. Chapter one is the introduction, it introduce background and meaning of the research, review and comment the privatization theory, and defined private economy, private enterprise, privatization and small and medium-sized enterprises, etc. In Chapter two, we introduce three theoretical foundations of this paper, namely: Property right theory, Stakeholder theory, Commission theory, in order to establish the foundation for the research. In chapter third and four, we describe some current situations of privatization of state-owned SMEs in China, and explain four big problems existing in privatization course, namely: Theoretical direction lag behind, phenomenon of state-owned assets loss generally, arrangement of enterprise's workers ,escape debt ,etc. Then, analysis relevantly the reasons for these issues using stakeholder theory. Draw the conclusion:Privatization is the balanced result that the government courts the function role, bank pursue commercial profit, operator pursue goal utility maximize, worker pursue income and welfare interests. In Chapter five, we carried on comparative analysis to the privatization ways of state-owned SMEs of our country. According to alter enterprise's property right, we divide the privatization ways into two kinds: State-owned and private run, private-owned and private run. And we also compare to and analysis the advantage and disadvantage of the ways. The "1+X " design is example and have drawn 4 enlightenments. In chapter six , how to quicken the development of SMEs ,we put forward external environment condition (financing environment, laws and regulations of perfecting, perfect market system etc.) and company administer, and expect to offer the experience to the reform of state-owned SMEs and the development of private economic in our country.