With the advent of the 21st century, the private enterprises faces more uncertainty in the business environment that both business opportunities and severe challenges exists. This made it a necessary choice to use staff incentive system to improve enterprises' core competitiveness. How to build and improve the incentive system in the private enterprises, to stimulate the staff's enthusiasm for work, to utilize the inner impetus of a company and to enhance the core competitiveness are the promblems that need to be resolved in the development of our country‘s private enterprises. In this article, private enterprises will be considered as analysis objects. The main solution will be proposed based on the significance of the stimulation to private business and the status quo of the incentive system in the private enterprises according to the theories.
Key words: private enterprises; incentive system; status quo; solution