Research On Transformation And Upgrading Strategy Of Private Enterprises Based On System Feedback

Private enterprises are the fastest-growing and most dynamic part of China’s economy,an important subject of the market economy,and have become an important force to promote China’s economic development.General Secretary Xi Jinping emphasized the need to strengthen the development of the private economy and promote the realization of the Chinese dream of the great rejuvenation of the Chinese nation.The 19th National Congress of the People’s Republic of China emphasized the need to support the development of the private economy and pointed out the direction.However,in the process of reform and opening-up,private enterprises are currently facing bottlenecks such as heavy taxes,high costs,insufficient funds,difficult financing,difficult market development,and poor business environment.The recent Sino-US trade war and the outbreak of Novel coronavirus pneumonia at home and abroad have continued to increase the downward pressure on China’s economic development,further aggravating the difficulties of production and operation of private enterprises.Many private enterprises are facing a crisis of survival,and the central region which the economic development is relatively backward particularly serious.Under this background,studying the influencing factors of private economic development and transformation and upgrading strategies are of great significance for promoting the continuous development of the private enterprise section and promoting the economic development of our country,and making private enterprises move towards a new era.Firstly,this paper sorts out related theoretical methods of private economy,transformation and upgrading and system dynamics.Secondly,it investigated a number of private enterprises and concluded that the influencing factors affecting the transformation and upgrading of private enterprises are mainly concentrated in five aspects:"inadequate number of talents,insufficient government services,lack of funds,insufficient market,and insufficient technological innovation".Taking SC technology company as an example,analyzes the influencing factors around these five aspects,establishes a flow rate model,with "number of talents,number of government services,total capital investment,market development quantity,scientific and technological innovation capital investment" for the flow rate of the basic tree model,and the relevant flow rate and flow level system are determined.On this basis,conducting the growth upper limit fundamental model research,generating the minimum fundamental model,for the system feedback mechanism analysis.After that,the branch vector determinant calculation method is used to calculate all the feedback loops of the private economy transformation and upgrading system,analyze the obtained feedback loops,study the constraints affecting the system,and better propose management strategies.Finally,the effectiveness of the strategy was verified by Vensim software.