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Private enterprise, referred to as the name of private enterprise, company or enterprise category, has different views on the concept of private enterprise in economic circles. 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.
"Private enterprises" in a narrow sense only refers to private enterprises and joint ventures with private enterprises as the main body. Due to historical reasons, the concept of "private enterprise" is not easy to get rid of discrimination. Investors, operators, employees and social workers who are interested in promoting the development of private enterprises tend to use the neutral name "private enterprise", which makes "private enterprise" another name for private enterprises in many cases, and this paper also agrees with this statement. The definition of private enterprises in this paper mainly lies in its narrow sense. After more than 20 years of reform and development, the private economy has overcome the shortcomings of weak foundation and congenital deficiency, and has become an important part of the national economy and the most active economic growth point in the national economy. Objectively speaking, the development of private enterprises is changing from the primary stage to the intermediate stage and developing in a more reasonable and scientific direction. At present, many private enterprises in China have chosen the paternalistic management mode. The management system is characterized by "family" and "kinship", with centralized leadership and autocratic decision-making, and the operators are both asset owners and asset managers. When the enterprise has a certain scale, paternalistic management lacks a "rectification" mechanism because the boundary between the decision-making layer and the executive layer is blurred. The limitations and arbitrariness of private entrepreneurs often lead to business decision-making mistakes.