A Study On The Development Of Small And Medium-sized Private Owned-Enterprises In Western Regions Of China

The development of SMPOE is of utmost importance in our economic construction and the process of China's reform and opening-up. SMPOE not only exerts good influence in national economic development, but also plays a positive role in absorbing a large number of surplus labors, promoting the SOE reform, advancing the national macroeconomic stability, benefiting the national economic restructuring and optimization, accelerating the establishment of market economic system and fostering entrepreneurs, etc. The less-developed enterprises run by the private is regarded as one of the key reasons that the economic development in western regions greatly lags behind that of the eastern areas. Therefore, it is essential for the western regions to speed up the development of private enterprises, especially small and medium-sized private enterprises if they are going to rapidly develop their economics so as to narrow the regional disparities with the eastern areas and finally catch up with the developed areas in the east. The paper, on the basis of the actual conditions in the western regions and by the help of the relevant theories in economics, such as the transaction cost, property right, industrial organization, trade expenses, principal-agent theory, game theory and information economics etc., points out the existing problems and deficiencies and puts forward the countermeasures against quickening SMPOE in the western regions. The paper consists of five parts. Part One deals with the relevant concepts and theories, defining and illustrating the theories in economics and SMPOE which will be used in the paper separately so as to offer a theory platform for the argumentation and analysis in the ensuing chapters. Part Two mainly discusses the momentous significance of SMPOE. The author, reviewing the course of our SMPOE and summarizing its important position and function in national economy, makes an analysis of the positive role of SMPOE. Part Three expounds the current situation of SMPOE, summarizes its achievements and points out the regional gap by means of a horizontal comparative analysis with the eastern areas. Part Four gives a profound analysis of the restrictive factors and problems in the process of SMPOE, including fund, technological innovation, industrial structure, enterprise's system and organization, market competition order and realization. Part Five puts forwards the corresponding countermeasures against SMPOE, including the establishment and improvement of financial supporting system, technological innovation supporting system, human resources management system, the formation of external environment of producing entrepreneurs, the promotion of competitiveness and industrious cluster and the establishment of fair environment, etc..