The country's legal system and market environment need to be further improved to create a better environment for the healthy development of Chinese entrepreneurs.

This was the conclusion of a general report based on a survey of 10 years of growth and development of Chinese entrepreneurs.

According to the report, released by the Chinese Entrepreneurs Survey System, most of the surveyed domestic enterprise owners and managers believe that the conditions they operate under, including policies and market mechanisms, have been improved over the past 10 years, but they feel that the legal system does not work in their favour in some cases.

The report said that more than 52 per cent of the surveyed entrepreneurs consider the current market environment and economic structure beneficial to their development.

Around 30 per cent of the respondents said they thought the policy environment, public opinion and cultural surroundings are favourable.

However, only 24.3 per cent of the surveyed people are satisfied with the current legal system.

"To boost rapid and healthy growth of Chinese entrepreneurs, their operating environment still needs improvement, especially the legal system,'' the report said.

Also, the establishment of a sound and effective supervision system is urged.

While 23.8 per cent of the surveyed entrepreneurs are satisfied with the current supervision system, 46.6 per cent think the current system is just so-so, and 29.6 per cent are unsatisfied.

The survey shows that business operators are likely to make mistakes in decision-making, staff-selection and economic issues, and that effective rules and regulations, and outside supervision are key measures in regulating entrepreneurs' behaviour.

Most of the surveyed people believe the most important supervision measure needed is the establishment of a functional assessment system. Other major measures include an auditing system to monitor economic responsibility, an individual liability investigation system to check up on wrong decision-making, a credit record and qualification system, the report said.

In addition, a market-orientated, fair selection and reward mechanisms are considered important to ensure the healthy development of domestic entrepreneurs, it said.

Though improvements have been made in selection and reward mechanisms, they are still far below entrepreneurs' expectations.

Those appointed by government still account 40-50 per cent of business managers, and the traditional government-regulated salary system still applies in many areas.

Only 7.1 per cent of entrepreneurs think they are adequately rewarded for the responsibilities and risks they shoulder.

Close

Today's Top News		Top Business News
+The next great leap after Shenzhou V ( 2003-10-21) +Hu calls for balanced development ( 2003-10-21) +Report: SARS not airborne virus ( 2003-10-21) +Japan urged to resolve weapons issue ( 2003-10-21) +Int'l AIDS group opens Beijing office ( 2003-10-21)		+Home-appliance giants want wheels ( 2003-10-21) +Exchange-rate reform under study ( 2003-10-21) +Health insurance sector called for ( 2003-10-21) +SanDisk teams up to open outlets ( 2003-10-21) +Housing prices start to sag in Shanghai ( 2003-10-21)