Since the reform and opening, private enterprises of China have got a rapid development, and have done a great contribution to the continual development of national economy. However, with the change of external and internal situations, private enterprise management appears to be defective, sometimes it even does harm to the development of the enterprises. This reports aims to present of the problem of private enterprises in China. In order to solve this problem, Chinese private enterprises should accelerate the management innovation. We analyzed the necessities of enterprises’ management innovation, the motivation of management innovation, obstacles to management innovation. Finally, it puts forward the countermeasures to solve the problems.