Research On The Factors Influencing The Growth Of Small And Micro Enterprise

With the growth of market economy,small and micro enterprises(SMEs)continue to grow and become a solid foundation to promote China’s real economy.SMEs play a major role in increasing jobs,promoting fair competition and reducing the poverty gap.However,from the current development situation,the survival rate of SMEs is not high,and their development is still limited by their own conditions and economic development environment.How to improve the survival rate of SMEs and make them bigger and stronger is a problem that enterprises must focus on solving.Therefore,in-depth analysis of the key factors affecting the growth of SMEs,and the discussion of their impact on SMEs and their internal operation mechanism will help promote enterprises’ s growth ability.By sorting out the relevant literature on the growth of SMEs,this paper theoretically analyzes the internal logic of the influence of internal factors(quality and ability of business owners,enterprise marketing ability,organizational structure,human resource management ability,technology acquisition ability,enterprise financial status and enterprise goals)and external environmental factors(industrial environment,market environment,policy and legal environment,financing environment)on the growth of SMEs,and constructs a model of factors affecting the growth of SMEs.In addition,based on data from 478 questionnaires in Hubei Province,we will discuss the influence routes and internal operating mechanisms of the internal and external factors on the development of SMEs,and verify the intermediary effect of internal factors between external environmental factors and SMEs’ growth.This paper puts forward the following research conclusions:(1)The internal factors such as the quality and ability of business owners significantly affect the growth of SMEs.If business owners have obvious abilities of marketing、human resource management and technology acquisition,meanwhile the enterprise goals and organizational structure meet the development needs of the enterprise,and the profitability of enterprises is good,the overall growth of SMEs will be better.Compared with other variables,enterprise marketing ability has a greater impact on the growth of SMEs.(2)External environmental factors such as industrial environment are conducive to improving the growth of SMEs.The development prospect of the industry where the enterprise is located is good,the government provides preferential policies to the enterprise,the enterprise has sufficient resources such as raw materials and employees,and customers have a strong demand for the enterprise’s products,in addition,corporate owns diverse financing channels、complete financial service institutions and mechanisms,which will help foster the growth of SMEs.From the impact of external environmental factors such as industrial environment on the SMEs,the financing environment deeply affects the growth of SMEs than other variables.(3)Internal factors play an intermediary role between external environmental factors and the growth of SMEs.There are 25 paths for the mediating effect,from the perspective of different dimensions,the quality and ability of business owners play an intermediary role in the impact of industrial environment and market environment on the growth of SMEs;Enterprise marketing ability plays an intermediary role in the influence of industrial environment,policy and legal environment as well as financing environment on the growth of SMEs;Organizational structure,human resource management ability,technology acquisition ability,corporate financial status,and corporate goals play an intermediary role in the influence of industrial environment,market environment,policy and legal environment as well as financing environment on the growth of SMEs.The suggestions of this study are as follows:(1)We should constantly improve the comprehensive capabilities of SMEs and enhance their development potential.First,pay attention to the construction of talent system.Optimize the staff structure,improve the comprehensive quality and ability of business owners,gradually improve the organizational structure and improve the level of human resource management.Second,constantly improve marketing ability.Adopt appropriate marketing strategies according to the market environment to provide satisfactory products and services to target customers.Third,vigorously promote enterprise innovation.Strengthen independent innovation,introduce technology to realize product innovation,and change the current situation of single product type and low added value.Fourth,improve the financial ability of enterprises.Establish a standardized financial management process and improve the level of financial management with the help of information means.Fifth,formulate reasonable enterprise objectives.According to their own characteristics to select appropriate enterprise objectives,establish correct business direction and improve the development ability of enterprises.(2)Optimize the external development environment of SMEs,and further improve the growth of enterprises.On the one hand,improve and perfect the relevant policy and legal support system,accelerate the construction of social service system,provide preferential policies for the sound development of SMEs,and create a fair development environment.On the other hand,we should create a more supportive financing environment,speed up the construction of financing guarantee system for SMEs,introduce supporting industry development policies,enrich financing channels for enterprises,and urge the implementation of policies to improve the effect of financing services.(3)Make full use of the external environment,constantly improve the situation of SMEs,and promote the sound and healthy development of SMEs.SMEs should timely adjust their development goals according to changes in the external environment,expand their business scope with the help of preferential policies and improve their market competitiveness.At the same time,make good use of the financial support provided by the government,financial institutions and other financing subjects,establish smooth and systematic financing channels,and reduce financing costs,so as to promote the sustainable and healthy development of SMEs.