| With the deepening of reform and opening policy and constantly improving of socialist market economy system in the30years, the state pay constant attention to the development of SMEs.The degree of openness in the industries is constantly increasing, and clearing the support measures of promoting development of SMEs by the form of law, providing a broad space for development of private SMEs. While the rapid development of Small and Medium Enterprises in the nation, the private small and medium Enterprises in Taiyuan is rapidly developing, the gross is increasing and the scale is expanding, which is becoming an important part in the national economy. Therefore, it is of great significance for Taiyuan’s economic and social stability to accelerating the development of private small and medium enterprises.This article according to the basic theories of institutional economics, western economics and management science. This research methods combine empirical research and normative research quantitative and qualitative analysis, analyzing the development of Taiyuan SMEs in simple tenns. This article starts from the current situation on private development of SMEs in Taiyuan, and focus on the problems of the SME development. After in-depth analysis of Taiyuan Private SMEs further favorable condition, and learning from the mainstream of theoretical research on the development of small and medium-sized enterprises in domestic and overseas, this article proposes suggestions on the development of Taiyuan SME and points out the private SME roadmap for the future development, which is the SMEs industrial cluster with Taiyuan characteristics. |