Growth Path Of Private Enterprises In Henan Province

With the development of China's economy and the improvement of market economy, the private economy is developing rapidly. As a private economic agents, the private enterprises are also rising rapidly. They have gradually become an important force in supporting and promoting the national economic growth. The private enterprises are playing an important role in promoting economic growth, increasing revenue, easing the employment pressure and maintaining social harmony and stability. However, duing to the constraints of external conditions and their own limitations, the private enterprises encountered many problems in the development process, there was a phenomenon of flash in the pan. Therefore, how to break through the private enterprises bottlenecks, let the private enterprises getting out from the original model and achieve a fast, healthy, sustainable growth is the current problem to be solved.During the last several years, great improvement shave taken place on the economy volume, product science level and social contribution degree. However, as a microcosm of China's private enterprises, the private enterprises in Henan Province didn't escape from the fate of many private enterprises. The private enterprises are often full of vitality in its initial stage, but begin to decline after a certain stage of development. The private enterprises have failed to take full advantage of their potential, For this situation, this paper analyzes the current state of the private enterprises in Henan Province firstly, pointing out that there are a lot of problems in the growing of the private enterprises in Henan Province, such as financing difficulties, weak technological innovation capability, irrational industrial structure, human resources, mismanagement and poor policy environment. Secondly, this paper analyzes the influence of technical factors, organizational factors, human factors, macro-environmental factors and industrial environmental factors on the growth of private enterprises in Henan Province deeply. By the analysis, we learned that these factors have already become the bottlenecks which restricted the healthy growth of private enterprises in Henan Province. Thirdly, this paper sums up the inspiration that the foreign small and medium enterprises, brothers provinces growth model of private enterprises providing to the private enterprises in Henan Province. These models provide a new way for the growth of private enterprises in Henan Province. For example, clear property rights of the foreign small and medium enterprises, export-oriented economic development of Pearl model, cluster development approach of Wenzhou model are all good experience to private enterprises in Henan Province. Finally, combining the actual situation in Henan Province, this paper proposed several paths to the growth of private enterprises in Henan Province:The first is to take the road of industry cluster development, using the cluster effect to foster the innovation capability and competitive advantage of private enterprises in Henan Province. The second is to take the road of export-oriented economic development, participating in international competition actively and improving the international competitiveness of private enterprises in Henan Province. The third is to take the road of modern property rights system according to the case of enterprises, clearing the property rights, eliminating the internal barriers of private enterprises in Henan Province. The fourth is to take the road of mainly processing agricultural products according to the case of enterprises, using Henan agricultural advantage to make the processing agricultural industry as a field of private enterprises.