Private Enterprises of the intenal control issuesPulin ChangEconomic Review. 2008, 5Third, the promotion of private SMEs in the internal control system strategy A change management and business owners the concept of development. The majority of private small and medium enterprises in the family business, the success of these enterprises depends largely on internal control or entrepreneur leadership attention and level of implementation. Over the years, by traditional Chinese culture, business owners believe in Sincerity, fraternal loyalty permeate many aspects of enterprise management, strengthen internal controls that will affect the organization the members of distrust, resulting in internal control. Many private business owners that rely on business to do business benefits out of, rather than out of the internal financial management control; that the market is the most important internal control will be bound himself and staff development. Understanding of the bias, so that these leaders neglected the internal control system on the production and operation activities. Internal control can really become the leader of the internal needs of enterprise internal control system is the key to whether a mere formality. The internal control to make the internal needs of the enterprise depends largely on two points: First, determine whether the company financial information in decision-making; second is whether a companys financial information by providing a true win the trust of the community. Improved treatment of the risks of private SMEs leaders attitude and risk control methods, transform their attitudes on internal control, internal control Jiang Hua Yi Shi, Tigao internal control concepts, Jiang enterprise management control system among financial people can promote the business management of Kexue process and sustainable development, in order to effectively establish and implement internal control B improve the quality of enterprise internal control system actors. In recent years, the ideological education of the private SME accountants, business training delayed, some do not have the qualifications of family members, relatives and friends was scheduled for accounting jobs, lack of knowledge of the internal control system. Although there are some companies internal control system, internal control system is not comprehensive and did not cover all the departments and personnel, not to penetrate the enterprise operating various business fields and in all sectors. Lack of effective inter-sectoral coordination and restraint, often resulted in disjointed management. Internal control system is the corporate business units or personnel in the business formation process of mutual influence and mutual restriction of a dynamic mechanism, is a control function of a variety of methods, measures and procedures in general, it is not equivalent to the regulations system, not the same as internal management, but not the organizational plan. Effective internal controls to the premise, the key is the internal control system as the main body of the manager and staff. Man is the subject of internal control behavior, failure of internal control, risk management, accounting, production risks are related to. Enterprises in the same time improve the internal control system to deal with the accounting staff of professional ethics education, Zeng Qiang accounting staff capacity to self-restraint; to strengthen professional training for accounting personnel to enhance the ability to work to reduce technical errors in the accounting business processesC improve the external environment for enterprise development, improve the internal control inputs. As the external environment for SME Development of the poor, the main energy-consuming business executives outside the firm, engage in social relations outside the firm to expand living space, focus on the market, run funds, no time to take into account the internal control issues. Enterprise to its survival and development, in order to achieve social capital and government departments have to coordinate relations in the expenditures. Through follow-up entrepreneurs and existing growing social network for all kinds of resources into the development of private small and medium business and follow the basic conditions, so that business leaders will invest a lot of human and financial resources outside the firm. Changing functions of government departments to improve the SME Development of the external environment, reduce the business and development costs, limited resources make it possible to achieve the internal control objectives. Development of private small and medium enterprises should gradually improve the internal control inputs, efforts to increase the effectiveness of internal control D establish an effective monitoring mechanism to ensure the effective implementation of the internal control system. To ensure effective internal control