Theory to explore the growth of SMEs

[Abstract] This paper describes the growth of SMEs in the status quo, based on the theory of business growth-related research to sort out and reviewed, and the growth of SMEs which to analyze the theory in practice.

[Keywords:] the growth of SMEs practical significance of the theory

I. Introduction
Business growth is an enterprise in their own development process, through changes in factors of production speed and production results obtained between the optimized value of the growth capacity of enterprises whose performance of the enterprise with industry and industry development, product prospects, firm size year expansion, the growing sustainable economic growth with sustainable, dynamic, volatility, profitability, expansion and other characteristics of the SME in the national economy determines the status and role of its theoretical and practical issues relevance and value of the SME theory is the core issue is one of the research on SME growth.

Second, the status of SME development
At present, the number of SMEs in China accounted for 99.3% of the total national enterprises, 55.6% of China's GDP, industrial added value of 74.7%, 58.9% of sales, social, and 46.2% of revenue 62.3% of total exports are created by SMEs, and the country about 75% of urban jobs is provided by the SMEs, the SME is to maintain the healthy development of sustained and rapid economic development and social stability, expand employment, improve the socialist market economic system must requirements.

SMEs with the pace of reform and opening up, an astonishing interpretation of the larger small miracle with their own charm and influence to obtain the legitimacy of its existence and growth as well as in the national economic system in an important position, so the system of induction and research business growth theory analysis and evaluation of further growth of SMEs have an important role.

Third, the Enterprise Growth Theory Review
Originated in the theory of large-scale production of business growth, extensive coverage of business behavior, business growth, organizational structure and management, basic content. Details as follows:
Fourth, the analysis of the practical significance of the Enterprise Growth Theory
Growth has become the measure of the ability of SMEs to develop objective criteria, in-depth analysis of the internal mechanism of corporate growth theory, theory with practice, to guide the growth of SMEs has far-reaching significance.

Government level view, the analysis of business growth theory in the government departments of the state of the overall development of SMEs to judge, to further develop targeted promotion of SME development policies and measures in the process, provide a theoretical basis.

Enterprise level, it seems, to fully understand the business growth theory could then develop a comprehensive understanding of the basic conditions of other SMEs, to determine the enterprises in the industry or industry-wide level of performance at the same time, based on evaluation results to further analyze the growth potential of the source and points that help companies clear strengthen management, improve economic efficiency and growth rate of the basic direction.

Community level, in our country, the SME development is the initial stage of research, information is scarce, the growth of the enterprise theory, research, social research institutions can help more in-depth theoretical study, will help deepen our small and medium business research.


References:
[1] Cheng Huifang Xing Yong: China's science and technology enterprise's capital structure, firm size and business growth [J]. The world economy, 2003, (12)
[2] Meng Lifeng Liu Yuan Yuan: SME growth constraints and countermeasures [J]. The vitality of enterprises, 2007, (12)
[3] Penrose: business growth theory [M]. Shanghai: Shanghai People's Publishing House, 2007 Links to free download http://www.hi138.com