Research On Government Behaviors In Private Economy Development Of Gangzha District

Since reform and opening up was launched 3 decades ago, private economy has achieved rapid progress and made significant contributions in promoting economic growth, increasing fiscal revenue and creating jobs, etc. Gangzha District is one of the major urban districts of Nantong City. The people have inherited entrepreneurship of Mr. Zhang Jian one century ago, and gone through two business start-up booms, in which they vigorously establish individual businesses and private enterprises, achieving fruitful results in terms of private economy development. In 2013, there are 15,000 individual industrial and commercial businesses and over 9,000 private enterprises in Gangzha District; the private economy has played a dominating role.The government has played an active part in promoting, supporting and guiding private economy; government behaviors have a profound impact on local private economy development. However, at this stage of transformation and upgrading, the service-oriented government has not been built in place yet, there is still room for government function transformation, and means of serving enterprises still require innovation. Government behaviors still restrict the private economy development.This paper first of all introduces concepts and connotations of private economy and government behaviors, emphasizes the two theoretical foundations of new public management theories and government intervention theories, and discusses government function positioning and behavioral mode in private economy development. Secondly, combined with actual situations of Gangzha District, this paper illustrates details about status quo and major characteristics of private economy development in Gangzha District, as well as government practices to promote private economy development. The focus lies in the 4 stages of private economy development in Gangzha District, as well as evolution of government behaviors at various stages.This paper analyzes problems present in government behaviors to promote private economy development in Gangzha District from the perspective of both internal and external factors. On this basis, it illustrates experience drawn upon from government behaviors in Sunan mode and Wenzhou mode, elaborates characteristics of the two modes, features of private economy development, and specific manifestations of government functions, and then draws appropriate conclusions; that is, the government should manage relationships with the market and exercise its functions properly; the government should compensate for market imperfections, make positive acts, and stimulate the vitality of enterprises. Finally, combined with actual situations of Gangzha District, this paper proposes policy recommendations on government behaviors to promote private economy development. First, transform government functions, and optimize the environment for private economy development. Second, highlight soft power, and guide private enterprises to strengthen cultural construction. Third, conduct innovations in term of service means, and improve financing services for private enterprises. Fourth, guide enterprises to enhance endogenous motivation properly, and sharpen their core competitiveness.