At present, Shanghai accounted for a quarter of the added value of private economy in the region, in the private economy to absorb employment and innovation is the role of economic unmatched by other components.Private economy is an important force in the whole social fixed assets investment of Shanghai, which is a private enterprise of real estate investment of a business.At present, service industry has become a pillar industry of the Shanghai private economic development, mainly in services of private economic development is relatively strong.In terms of industrial sectors, the private industrial enterprises in Shanghai urban, science and technology, and export-oriented characteristics continuously emerging.In addition, the Shanghai foreign investment and foreign trade of the private economy has been more than state-owned economy and foreign economy, become the dominant force in the foreign direct investment in Shanghai.Currently, Shanghai's rapid growth in labor costs, trade barriers and investment and financing environment to optimization problem are the main challenge of private economic development.Therefore, only effectively reduce the labor costs, optimize the policy environment for the development of private economy in Shanghai and the investment and financing environment, can effectively promote the development of private economy in Shanghai.