Abstract: Af ter an investigation of the status quo of township enterprises in Xiangxi Autonomous Prefecture, the author of this paper finds that there are such problems exisiting in these enterprises as smaller size, irrational structure and poor management.The author holds that the only way to overcome these problems is to grasp the opportunity of fered by the strategy of the grand exploration of western regions and deepen the reform of the economic system.

Key words: township enterprises, reform, problem, countermeasure