Chenese Private Enterprise System Innovation

With the continuous improvement of the socialist market economic system, China’s overall economic level has been rising in the recent years, especially the rapid development of private enterprises. Private economic development is conducive to the diversification of enterprise property rights and adjustment of market mechanism operation state, and so it has become a key force to promote and support the growth of the national economy. The current model of China’s private enterprises development is mainly family system, in the early stages of the enterprise establishment; this model can reduce the supervision and agency costs of the business, and improve the efficiency of production. However, with the continuous development of enterprises and increasing market competition, its problems continue to emerge, such as, business management failed to improve to the standardized degree, inappropriate operators’ inheritance and human resources problems, disharmony in dealing with stakeholders during the development and so on. Therefore, the understanding of the internal and external environment of private enterprises operation has important theoretical and practical significances in promoting the modern enterprise system reform, achieving the concept and management system innovation of enterprise, and achieving the continuing development of private enterprises.On the basis of analyzing the basic meanings and characteristics of the family private enterprise system, it analyses the main problems and causes of this model, taking example by the reform experience of the USA’s and Japan’s private enterprise system, proposing the major policy proposals of promotion in changing China’s modern private enterprises system, and taking two cases of the enterprises reform from an empirical point, it analyses the problem of private enterprises in the process of institutional change,and solving related problems by using policy proposals put forward in this paper.