The Study On The Growth Of SMEs Based On The Life Cycle And The Dynamic Capabilities

Not only in the developing countries,but also in the developed countries,Smalland Medium Enterprises (SMEs) play a very important role.The operating mechanismof SMEs are flexible,and able to timely meet market demands which the Largeenterprises can not do sometimes.At the same time SMEs are a powerful force oftechnological innovation in the modern market economy.The frequency of thetechnological innovation is higher than the enteprises. Simultaneously,SMEs haveplayed a significant role in the development of regional economy,increasingemployment,expangding exports.But Our nation’ SMEs have some difficulties.Thelife cycle is relatively concentrated,difficult to achieve sustainable development andlack of core cometitiveness.According to statistics,about200000new SMEs are setup,but at the same time150000SMEs are facing death.In the development ofSMEs,they are facing many challenges.Therefore,how to break the bottleneck in thedevelopment of enterprises and achieve sustainable success is a suvject worthy ofstudy.The article analyze the growth of SMEs from the perspective of corporate lifecycle and divide the life cycle into four stages:the start-up stage,the growth stage,thematurity stage,the decline stage.In the different stage of life cycle,the SMEs facedifferent crisis which if not addressed timely may be washed out.At that time,if thecrisis can be able to defused,the enterprise will be in an invincible position amang thebutal competition.Therefore,the article integrate the dynamic capabilities into everystage of business growth in order to provide a strategic thinking for the businessgrowth. In the studying process,the article focus on the study of businessgrowth,dynamic capability, life cycle and at last, build a model which is based on lifecycle and dynmic growth of SMEs.This article described the dynamic factors about the growth of SMEs in detail inthe life-cycle growth model.Amang the growth process,the SMEs will face with many drivers and constraints which come from the intenal or external enviroment.Thecompany will face some crisis in the transition from one stage to another stage.In suchcircumstance,the business must improve the dynamic capabilities,integrate theinternal and external knowledge in order to improve the ability.The dynamiccapability play an important role in every stage of life cycle in order to ensure asmooth transition between the various stages.At the same time,the SMEs need have acertain quality such as financing capabilities.Finally,on the basis of the specific analysis of the model runs,the articleelaborates the growth of SMEs in different stages of life cycle strategy.This has animport significance in guiding the development of our SMEs.Due to limitedcapacity,there are some limitations in the theoretical argument,but as an attempt tostudy,this article play a role in guiding the development of our SMEs.