Abstract: Private investment is the major support and the most active factor in fixed investment inHunan Province,and is also an important force to carry out the process of urbanization.However,there still exists a large gap compared with that in other coastal provinces.To realize the 12th Five Year Plan (2011-16),an annual increase of 30% is needed according to the calculation of aggregate investment,investment coefficient of elasticity,and expansion of investment scale.To solve such problems as financing difficulty,restriction of market access,unfavorable investment environment,and low-quality of private enterprises,we should properly carry out the policy,strengthen macroscopic guidance,and push forward experimental reform.

Key words: private investment, economic development, restriction factors, policy