Since the reform and opening up over 20 years ago, China's private economy has developed vigorously from nothing to something, and from small to large. In terms of economic scale expansion, the construction of modern enterprise systems is also advancing, and the standardization level of enterprises is continuously improving. According to statistics, currently there are more than 880,000 private enterprises that have adopted the limited liability company system, accounting for more than 58% of the total number of private enterprises. A group of outstanding private enterprises have already implemented the joint-stock limited company system, among which some have become listed companies. However, from the perspective of the overall enterprise reform, and in response to the challenges posed by WTO accession to the private economy, the necessity for private enterprises, especially those that have reached a certain scale, to establish modern enterprise systems is becoming increasingly prominent.
One notable issue regarding the establishment of modern enterprise systems in the private economy is how to perceive and handle family-run businesses. There are those who hold a positive attitude towards family-run businesses, and others who criticize and negate them. Overall, these family-run businesses have both advantages and disadvantages. Handling this issue should take into account the following aspects:
Firstly, the construction of modern enterprise systems in private enterprises should follow the principle of owner decision-making, respecting the right of owners to choose the enterprise system, and believing that owners have the motivation to optimize the system, avoiding the phenomenon of pulling up seedlings to help them grow.
Secondly, the professional manager system is a prerequisite and foundation for the modern enterprise system in the private economy. Currently, the development of China's professional manager system lags behind, with laws being very incomplete, and employment contracts imperfect. There is a lack of corresponding legal basis for handling issues related to employment contracts, infringement of trade secrets and intellectual property disputes, and embezzlement of corporate assets; the interest relationship between bosses and managers is unclear, making it difficult to establish trust relationships based on rules; the professional ethics and behavioral norms of professional managers have not yet been fully formed. At present, it is necessary to start from the construction of the professional manager system and professional standards, creating a good external environment for private enterprises that wish to move beyond family limitations.
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