Abstract: This paper,taking the private enterprises as research subject,analyzes the situation and limitation of their institutional arrangement.The closed property system which hinders outside profit,the favoritism personnel system which hinders the long-existence of the enterprise,the central-powered system which hinders the modern management,the family culture system which hinders the enterprise’s development,and the dull technological system which hinders the long-term competitive ability of the enterprise are also discussed here.

Key words: private enterprise, system arrangement, limitation