The Quality Of Private Entrepreneurs And Business Growth In China

The Quality of Private Entrepreneurs and Business Growth in ChinaPrivate enterprises develop rapidly since the reform and opening up. Now they have become the key component of our socialist market economy and play a very important role in many aspects, such as: promoting national economic growth, enhancing the comprehensive national strength, increasing financial income and providing more employment opportunities. However, private enterprises have fallen into a short-lived cycle. Related Statistics show that, around 150,000 private enterprises establish every year, at the same time, about 100,000 private enterprises bankrupt, 60% of private enterprises close in 5 years, and 85% of private enterprises close down in 10 years. Generally private life is only 2.9 years. The short-lived phenomenon has aroused widespread concern and consideration, that many scholars think markets, resources, institutional arrangement and corporate culture are factors causing the short-lived phenomenon. These factors reflect certain facts, but they does not find the real reason. The author believes the quality of private entrepreneurs is the key factor which impacts on the growth of private enterprises. Base on entrepreneur theory, enterprise growth theory and enterprise life cycle theory, this paper combines entrepreneurs with business growth, mainly studies the action mechanism of the quality of private entrepreneurs in different stages of growth. In the end, the author puts forward some suggestions on improving the quality of private entrepreneurs and promoting private enterprise growth. This paper is divided into five sections.The first chapter is introduction. It begins with the short-lived phenomenon of private enterprises, then introduces the research background and purposes. The last is the research thinking and framework, possible innovations and shortages.The second chapter is relative basic theory . This part describes research results of entrepreneur theory, enterprise growth theory and enterprise life cycle theory at home and abroad, then gives a simple assessment.The third chapter analyzes the role of private entrepreneurs quality in the process of business growth. First, the author puts forward the content of private entrepreneur quality. This paper argues that an excellent private entrepreneur should have the quality as follows: good personal accomplishment, healthy physical, sensitive political quality, rich knowledge, good management quality and ability quality, etc. Next, the paper analyzes the quality of private entrepreneurs on the role of business growth. At last the paper analyzes the relationship between quality of private entrepreneurs and business growth.The fourth chapter analyzes the quality of private entrepreneurs in different stages of business growth. In the start-up period, all aspects of the business are not perfect, everything is in the exploratory study. As a result, private entrepreneurs should have plentiful energy, full of passion and self-confidence, strong innovation consciousness, a keen market insight and strong will. However, due to the particularity of the initial stage, private entrepreneur quality still exists certain lack, for example, the decision- making lacks scientificity and democracy, social responsibility consciousness is light, entrepreneurs culture quality is not high, and the credit consciousness is not strong.The fifth chapter puts forward countermeasures to promote private entrepreneur quality and business grows continually. Some suggestions comes mainly from the external environment for private enterprise growth, private entrepreneurs themselves and the private enterprise three levels. First, in the external environment, we must improve the public opinion environment, strengthen the training of private entrepreneurs,optimize legal environment and policy environment which private enterprises rely on. Second, as for private entrepreneurs themselves, they should sharpen the learning capability, strategic ability, organizational ability, innovation ability as well as good faith consciousness. Last but not least, in the level of private enterprises, they should establish the perfect incentive mechanism and the restraint mechanism.The sixth is the conclusions. It is the generalization of the quality of private entrepreneurs and business growth, pointing out the shortcomings of the paper and the directions of the further research.