What is a private enterprise?

There are different views on the concept of private enterprises in economics. One view is that private enterprises are legal person economic entities with private investment, private operation, private enjoyment of investment income and private undertaking of business risks.

Another view is that relatively state-owned enterprises can be divided into state-owned private enterprises and private private enterprises according to different forms of ownership. The property rights of state-owned private enterprises belong to the state, and the lessee shall, in accordance with the requirements of the market economy, raise funds by itself, operate independently, be responsible for its own profits and losses and bear its own risks. Private enterprises refer to individual enterprises and private enterprises.

Extended data:

First, the operation mode of private enterprises:

The mode of operation of private enterprises refers to the mode of operation in which the owners of enterprise assets conditionally transfer the business functions such as possession, use, disposal and income of assets to the enterprise on the premise of ensuring the ownership of assets from their own interests. At present, there are mainly contract management, share management, lease management, entrustment management and bidding management in China.

Second, the defects of private enterprise management:

1, honesty and trustworthiness is the top priority of an enterprise and an indispensable strategy for its development.

2. Enterprises lack the mechanism of fair competition. An enterprise is a big ship, and the boss is the captain, but the grassroots sailors are unwilling to work hard because of the unfair mechanism.

3. Management is the key for an enterprise to solve contradictions and communicate, but according to the survey, family management accounts for the vast majority of private enterprises, which brings greater internal friction and becomes the biggest cost of enterprises.

4. The respect and concern of enterprises for employees is one of the important elements to promote employees to seek benefits for the company. Facing the basic emotional needs of employees and how to treat the reasonable interests of employees, how many private entrepreneurs can do these two things with ease, but they really can't do it without financial strength.

References:

Baidu encyclopedia-private enterprise