With sufficient confidence in "bold development", private enterprises have exceeded 50 million new small and medium-sized enterprises | market | confidence

According to the State Administration for Market Regulation, the number of registered private enterprises in China exceeded 50 million in early April and reached 50.9276 million as of the end of May. Compared to the end of 2012, the proportion of private enterprises in enterprises has increased by 3.7 times, from 79.4% to 92.4%, further enhancing their position and role in the development of the national economy.

There is "confidence" in the continuous optimization and development of the policy environment

It is understood that the development of private enterprises currently presents three major characteristics: balanced regional development, continuous optimization of industrial structure, and good development momentum of the "four new economies".

Behind the strengthening and optimization of private enterprises is the continuous optimization of the policy environment.

The report of the 20th National Congress of the Communist Party of China pointed out that we must adhere to and improve the socialist basic economic system, unwaveringly consolidate and develop the public ownership economy, unwaveringly encourage, support, and guide the development of the non-public ownership economy, fully play the decisive role of the market in resource allocation, and better play the role of the government; The "Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy" released on July 19th proposed 31 supportive policies for the development and growth of the private economy, from the aspects of breaking institutional barriers that restrict the development of private enterprises, protecting the rights and interests of private entrepreneurs, objectively and comprehensively understanding the private economy and private economic personnel, etc. It released a clear policy signal to guide private enterprises to practice the new development concept, strengthened the confidence of private enterprises to move forward lightly and boldly, and the determination to stick to their main business and strengthen the industry.

At the same time, many regions have successively introduced specific measures to promote the development of the private economy, focusing on alleviating financing difficulties, optimizing the business environment, and promoting high-quality development.

The "Strong Observation" column of People's Daily found that local "leaders" from Chongqing, Zhejiang and other places have been visiting private enterprises for research and holding symposiums since the end of last year. Yinchuan City has released several measures to fully create a better and better service environment to support the high-quality development of enterprises, stimulating the vitality of market entities and promoting the high-quality development of private economy; Shaanxi has introduced the "Ten Measures to Vigorously Serve the High Quality Development of the Private Economy", focusing on solving common problems faced by private enterprises in their development, such as demand response, policy acquisition, and enterprise affairs.

Xue Ting, Executive Director of the China Youth Entrepreneurs Association, stated that many regions have actively introduced measures to stimulate the vitality of the private economy, which not only provides a good development environment for private enterprises, but also creates conditions for restoring and expanding consumption.

Restoring growth and demonstrating resilience and vitality

According to the relevant person in charge of the Registration Bureau of the State Administration for Market Regulation, since the beginning of this year, China's private enterprises have recovered and shown strong resilience and vitality. In the first five months, 3.764 million new private enterprises were established nationwide, a year-on-year increase of 17.2%, which was 6.5 percentage points faster than the growth rate in the first quarter.

As of the end of May, the proportion of registered private enterprises in the central and western regions of China has increased, while the proportion has decreased in the eastern and northeastern regions. The five provinces with the largest number of private enterprises are 6.968 million in Guangdong, 4.347 million in Shandong, 3.845 million in Jiangsu, 3.2 million in Zhejiang, and 2.599 million in Henan. The largest growth in the past decade is mainly in Xizang, Chongqing, Hainan, and Anhui.

In addition, since the beginning of this year, newly established private enterprises in China have mainly focused on wholesale and retail, leasing and commercial services, scientific research and technology services. The accommodation and catering industry has recovered well, with 69000 new private enterprises established, a year-on-year increase of 44.4%.

"A series of data shows that the overall scale of private enterprises in China is steadily increasing, the industrial structure is continuously optimizing, and regional development is more balanced." Pan Helin, co director of the Digital Economy and Financial Innovation Research Center at the International Business School of Zhejiang University, said that in recent years, with the deepening of regional industrial transfer, the proportion of industrial added value in the central and western regions has been continuously increasing, and the development gap between regions has further narrowed.

Innovative development of the "four new economies" as new growth points

With the continuous implementation of a series of policies, the vitality of the private economy has been further stimulated. Among them, the "four new economies" have become an important foundation and driving force for promoting high-quality development. According to data, as of the end of May, the number of private enterprises in China's "four new economies" has exceeded 25 million. Among them, a total of 2.15 million households were newly established from January to May, accounting for 57.1% of the newly established private enterprises.

"The essence of the 'Four New Economies' is independent innovation, which is a new economic form based on practical applications, guided by market demand, with technological innovation, application innovation, and model innovation as the core and integrated with each other. In Pan Helin's view, it has broad coverage and integrated promotion in the primary, secondary, and tertiary industries, opened up market space, and formed new growth points.".

In recent years, the innovation quality and technological level of private enterprises in China have significantly improved. Liang Zhifeng, Director of the Small and Medium sized Enterprises Bureau of the Ministry of Industry and Information Technology, recently stated that as of the end of May 2023, more than 1420 specialized, refined, special, and new small and medium-sized enterprises have been listed on the A-share market, accounting for 27% of the total number of A-share listed enterprises. Among the newly listed enterprises from January to May 2023, specialized, refined, special, and new small and medium-sized enterprises accounted for 56%, becoming the main force for listing.

The "Four New Economies" are guided by market demand, and private enterprises have high decision-making efficiency and flexible operating mechanisms, which can quickly discover market demand.

To better serve the development of enterprises in the "four new economies", many regions have actively introduced supportive policies to stimulate market vitality and creativity, and create a favorable environment for innovative development. For example, Yangzhou City has drafted the Implementation Opinions of Yangzhou Market Supervision System on Promoting Inclusive and Prudent Supervision and Optimizing the Business Environment in the "Four New Economies", and held a special symposium on inclusive and prudent supervision in the "Four New Economies". The person in charge of the Administrative Law Enforcement Coordination and Supervision Department of the Municipal Bureau of Justice and representatives of eight "Four New Economies" enterprises were invited to participate in the meeting to explore new paths for market supervision.

"In fact, the enterprises should have the best understanding of the market and economy." Pan and Lin emphasized that private enterprises should be encouraged to enhance their innovation drive, increase research and development investment, and guide them to take the path of specialized, refined, unique, and new development through financial and tax incentives. In addition, we must continue to deepen the reform of "streamlining administration, delegating powers, and improving services", establish an inclusive and prudent law enforcement and supervision mechanism for the "four new economies", and fully mobilize market vitality.