As one of the most active regions referring to China’s private economy, the private sector of Cixi has been played a most important role of it’s economy in the past two decades, it is famous for “one village one product”, that is, in a village there will have many enterprises produce identical or similar productions, various enterprises has been developed both in competition and cooperation. Although this model has showed its own success by practice, but there are many problems. In this paper, we will study on the specific constraints encountered by the small and medium-sized private enterprises of Cixi in the developing process. Firstly, do a general analysis on the cause of the problem and make a solution plan, secondly, provide recommendations through empirical analysis after the survey on two cases, and set examples for other enterprises to learn from the study.
KEYWORDS: Cixi, private enterprise, incentive mechanism, industry clusters
