The Study Of Corporate Development, Based On The Theory Of Life Cycle

The development of Enterprises is similar with organic life's prosperity. The majority of corporates have short life; the corporate's average life expectancy is only 12.5 years old which was revealed by foreign scholars, while China's SMEs has much shorter life span, which is only 3.5 years. What factors affect the company's survival and development? If we can reveal the factors which affect business growth, the study result will no doubt provide managers or enterprisers with meaningful reference value.Having systematically reviewed enterprise life cycle theories and enterprise sustainable growth theories, this Paper Put forward a Private corporate life cycles stage standard for SMEs through a careful argumentation. That is, to segment the life cycle of SME Into six stages: Carve Out, Growth, Diverse development, Matured Wane and recovery. Then, a model Questionnaire is designed according to this model and the corresponding assumed theory. On the ground of the 564 effective questionnaires returned, we use SPSS software to Perform reliability, effectiveness and correlation analyses. Multi-regression analytical method is especially used to analyze the affecting factors during each SME growth stage to test assumed theory.The research result indicated that:1) The way of internal variables changes among various stages implicits the nature of Gestalt.2) In the start-up phase, marketing and technology play a very important role.3) In the growth stage, Research and Development capabilities and decision-making methods play key roles.4) In the diverse development stage, control systems and informal management of enterprises plays very important role.5) In the mature stage, management, brand and marketing play key roles.It investigated SGAF for SMEs with the beginning of Enterprise life cycle theory, and further constructed a SGAF Model with reference to forerunners' research achievement. Then a feasible Private enterprise lifecycle stage segmentation standard was Put forward and demonstrated. Finally, this paper employed research data SMEs and statistic tools to analyze and discuss SMEs SGAF from both overall and Partial Point of view. From all the above analyses, this Paper suggests a new methodology to research how SMEs can thrive in long term, which contributes to empirical research of SMEs sustainable growth.