Research for Advantages, Chances and Problems of Private Enterprises in China

The advantages of private enterprises focuses on the following two aspects. One is that there is a clear boundary between capital and ownership and a definite relationship between rights and responsibilities, which thoroughly ensures that private enterprises maintain the relevant independent position of the main body in the market economy. The other is that dynamic mechanism is reasonable and response mechanism is flexible, which greatly increases the adaptive ability to market. The chances of private enterprises appear i n the underlying two areas:one is that there will be a broader developing space for private enterprises after the 16th National Congress of the Communist Party of China. The other is that the ownership reform of state-owned enterprises provides a better chance for the development of private enterprises. Private enterprises have primary problems: firstly depending on the kin and having a heavy atmosphere of family; secondly paying more attention to individual management and having a strong sense of petty farmer.