Empirical study on commonness of fast growing private enterprises in China

Abstract

PurposeThe paper aims to examine the similarities of fast‐growth private enterprises (PEs) in China with particular focus on enterprises listed on growth enterprises market in order to draw managerial implications for other PEs.Design/methodology/approachThe paper looks at the release effects of intangible assets in PEs. It examines the excavation effects of preferential policy on PEs and goes on to discuss the agglomeration effects of the inherent advantages of these.FindingsThe paper argues that the fast growth of PEs in our sample was attributable to three main factors, i.e. benefits of intangible assets marketisation, shrewd use of government preferential policies and technological and managerial capabilities.Practical implicationsThis research calls for the Chinese Government to adjust relevant policies to create a fair and competitive environment for enterprises with different ownerships and different scales.Originality/valueThe paper highlights the fact that the social and economic conditions of China in the post‐transition period have changed greatly and that the Chinese Government needs to clarify and define the existing characteristics and functions of enterprises and improve their service‐oriented functions.