1. Low level of economic development
Compared with the work of earlier years, Chenzhou county economy gained great achievements in recent year. But compared with other cities in Hunan province, it still stays far behind. In 2009, Chenzhou per capita GDP and per capita financial revenue hit 18569 yuan and 169 yuan, which were 1657 yuan and 45 yuan lower than the average level of Hunan province. In 2011, urban residents’ disposable income and farmer’s per capita net income reached 15342 yuan and 5208 yuan respectively, 1224 yuan and 414 yuan lower than the average level of Hunan province.
2. Poor optimized economical structure
The general condition of the structure of Chenzhou county economy is that the first industry is not strong while the second and third industries show delayed development; the economic growth model is single and its operation quality and efficiency are slow. One is the lack of modern agricultural development. Due to the restraint of geological condition and technological quality, Chenzhou city’s agriculture is mainly focused on traditional agriculture, while its mechanization of agriculture turns to be low condition, which causes the delay of developing its agricultural processing industry. Second, industrial structure is unreasonable. The quantity of large and medium-sized enterprises takes just a small part as 3.5% of state-owned and above scale enterprises of Chenzhou city. Most of the enterprises show the condition of laggard technology, high energy consumption, and low added-value. Even in large and medium-sized enterprises, the competitiveness groups are rarely obvious. Third, emerging service industry is not well improved. The traditional service industry is the main part of Chenzhou service industry, while the emerging service industry is still with tiny contribution to the economy.
3. Hard condition for the financing of enterprises
Non-public economy is the main body of Chenzhou county economy. Without an efficient credit assessment system, Chenzhou county economy was restrained by financing problems, which would block its further development. The loan balance of Chenzhou counties in 2010 amounted to 37.46 billion yuan, about 3.2% of Hunan province. The loan balance of Chenzhou city increases to 5.83 billion yuan in 2010, which was about 5.1% of Hunan province
4. Large gaps between urban and rural areas
Due to the low levels of agricultural technology, the product quality, production efficiency and the enthusiasm of farmers engaged in production are not so high. Meanwhile, affected by global financial crisis and other unfavorable factors, the township enterprises had slower development, causing the rural workers have much more difficulties in finding their jobs. Furthermore, because of the low education level and shortage of capitals, it is even hard for farmers to establish their private businesses. All the above factors make the channels of income increasing even narrower, and enlarge the income gap between rural and urban areas. In 2010, the farmer’s per capita net income was just 5208 yuan, which was about 33.9% of the urban residence per capita disposable income.