Researching the Impacts of Political Connection of the Development of Private Enterprises

In the 30 years of reform and opening up, the private economy develops rapidly. However, the development of private enterprises encounters many difficulties at present, such as obtaining loans difficultly and the tax burden. This paper, from three dimensions: the macroscopic environment, the business environment, and the individual environment, investigates private entrepreneurs' subjective cognition of their own living environment through the form of a questionnaire survey. And with the addition of researches on entrepreneur values and behaviors, this paper analyzes that if entrepreneurs' political connection will be able to improve the value of private enterprises. This study finds that the influence of entrepreneurs' political connection improves the corporate governance structure through providing convenience for enterprise financing, so as to promote the development of private enterprises. But the entrepreneurs' political connection on the size of tax burden and the corporate talents loss degree is not significant.