Exploring the Development of Private Enterprises in China:Insights from Guangdong, Jiangsu, and Zhejiang

Abstract

The important role of China’s private enterprises in economic development has received more and more widespread attention. China’s private enterprises are playing an increasingly significant role in many aspects. But at the same time, the development of China’s private enterprises has been restricted by many aspects, and their development has not been smooth sailing. Relevant research conclusions on the development of China’s private enterprises are contradictory, that is, China’s private enterprises have contributed to the development of the overall economy but also face development constraints and difficulties due to various reasons, or there are shortcomings in development. This contradiction raises the question of “how will China’s private enterprises develop?” Accordingly, this study uses a multi-case analysis method and selects Guangdong, Jiangsu and Zhejiang provinces in China as research cases to conduct a comparative analysis of the development of private enterprises in the three provinces. The study found that even in economically developed areas, there may still be deficiencies in the development of private enterprises, thus explaining the contradictions between related studies from a realistic perspective. Through research, this article draws the following conclusions: (1) Provinces with high levels of regional economic development may not necessarily have an advantage in the development of private enterprises. (2) In provinces where private enterprises have advantages in development, private enterprises show stronger strength than state-owned enterprises. (3) Compared with traditional industries, private enterprises engaged in emerging industries have achieved better development. Then, this article puts forward implications for the development of China’s private enterprises from the aspects of grasping the government’s industry-oriented policies, opening horizons and widely expanding business, and achieving transformation through technological innovation.