Research Of SMEs Growth Evaluation Bases On Catastrophe Progression Method

Since the eighties of twentieth century, SMEs of China had experienced a rapid development, both in quantity and in output value. SMEs play an increasingly important role in expanding employment, enlivening market, distributing income, effecting social stabilization and adjusting structure and layout of the national economy. SMEs have become an important growth point in economy of China and made tremendous contributions for the economic development of China.Science and technology are advancing rapidly. The tendency of economic globalization is accelerating. The scope for competition is expanding. Competition is increasingly fierce. The external business environment of enterprises has undergone great changes in the twenty-first century. The survival and development of enterprises face greater challenges in such an uncertain and unpredictable dynamic nature. According to the Statistics of Trade and Industry Bureau, the average lifespan of SMEs in China is only 3-4 years. The development of SMEs that play an important role in our economic and social development is not optimistic. Firm size, available resources and internal control are key factors in the sustained and healthy growth of SMEs. Therefore, the growth of SMEs, especially evaluating the growth of SMEs, becomes the focus in academics and practitioners discussion. Researches on this issue will help theoretical and empirical researches on related problems of SMEs. It will help government departments constitute targeted management systems according to the development of SMEs. It also can help SMEs understand their situation of development, which will help SMEs clarify the basic direction of strengthening management, improving economic efficiency and growing.The paper first defines the concept of SMEs and business growth related to the growth of SMEs. The paper put forward to a dynamic vision of evaluation system in reviewing and summing up the theory of the growth of SMEs and the evaluation method of the growth of SMEs. Based on this vision, paper researches the business growth system and the nature of business growth in-depth to propose the dynamic capabilities of the growth and choose catastrophe progression method as evaluation for the appropriate system analysis. The paper introduces principal components analysis as a secondary method to make up for deficiencies in method. This compositive evaluation model achieves a dynamic vision of evaluation system of the growth of SMEs from technology. This evaluation model, combined with the dynamic ability of business growth, builds a combination of static and dynamic evaluation system for the growth of SMEs. According to the evaluation system, the paper selected 102 SMEs of Shandong Province to do the empirical research of the growth evaluation. After the test on the validity of the evaluation model of growth of SMEs, the paper analyses rankings of the growth of SMEs and the advantages and disadvantages of dynamic business growth capability in regions. At last, the innovative conclusions of the current research and suggestions for the future related to current topic are summarized.