Development of Private Enterprises

Has experienced several decades of ups and downs, China's private enterprises have become a force for the Chinese economy. However, because of China's private enterprises many of the inherent weaknesses and the external environment constraints, resulting in the development of private enterprises Jubu only difficult; many once Xiongbayifang,market of private enterprises, Jieru comet and a drop-Shing, has evaporated. "China's private enterprises the average life expectancy of only seven years", the statistics fully describe the development of private enterprises in China difficult. This article from the dynamic development of private enterprises because, strategies and methods, development often committed errors in the growth of private enterprises in theory and practice of. First, growth in private enterprises Cause.

China's private enterprises are basically from a one and one one, who a few individuals from the business development. It has a small-scale, self-employed (and non-experts) characteristics. In the early stages of business development, very little money, very small market opportunity, we can guarantee the development of private enterprise and efficiency, but also at the same time its weak anti-risk capability, a narrow range in the market, profitability instability fatal flaws . In addition to private enterprise to survive the pressure to force its rapid growth, in theory, mainly due to economies of scale and scope of economic, learning effect, imperfect competition and the momentum generated excess profits from the pressure of competition.

To achieve economies of scale. In theory, economists often defined as a result of economies of scale to expand the scale of production and lead to long-term decline in the average cost. For example, if a vendor to all elements of its volume increased 100 percent, the result is to increase production more than doubled, then, it has emerged that economies of scale. Generate economies of scale is the main reason for the division of labour, professional and technical factors. Specifically, there are four factors: With the expansion of the scale of production, manufacturers can rationalize the division of labour, improve the degree of specialization;