Research On The Growth Factors Of Technology-Based SMEs

Entrepreneurship and innovation activities as a bridge of technology into practical productivity are becoming the engine of economic development as well as the important driving force. The replacement of traditional industries by high-tech industries replace has become the main engine of the world economic growth. As the the main body of the high-tech industry, technology-based SMEs have made significant contribution to the rapid development of global economy, being the most dynamic point of growth throughout the development of national economy. However, the development of Chinese SMEs is late compared with the developed countries and the corresponding theoretical research is immature, so that the SMEs are in short of adequate guidance to help them operate companies and don't have thorough understanding of the features of technology-based SMEs, resulting in the weak growth and the business failures. Thus, it seems very important and urgent to do some research on the growth factors of technology-based SMEs and finding the best development pattern of technology SMEs, aiming at the features of start-up technology SMEs growth environment and the process of growth.This paper summarizes and analysis the relevant literatures, and explains the nature and characteristics of the newly created SME growth, based on the newly created technology SMEs. Based on this, this paper does deep research on the creation factors of technology-based SMEs, finding that the SMEs creation and growth need three important conditions: the accumulation of resources, enterprise ability transformed from resources, and the development of enterprise adaptive ability. This paper identifies the creation elements of technology SMEs, including the internal and external creation elements and a detailed analysis of the impact of creation elements on the growth of SMEs given by building the elements of the role model. The interaction of the creation elements is also further clarified. In addition, the paper proposes a concept of "Growth Ba" to describe-a more authentic and and clear picture of enterprise growth. Then, a more in-depth analysis on the relationship between SMEs growth and the "Growth Ba" is given from three aspects: the evolution of the "Growth Ba", the forces of the "Growth Ba" and the direction of the "Growth Ba". Finally, the paper constructs a dynamics model of SMEs growth based on the analysis of"Growth Ba". The study of "Growth Ba" provides a new perspective of the relevant studies of enterprise growth and broadens the horizon of business growth research.An empirical research of SMEs growth elements has been done based on the above theoretical analysis from the growth factors inherent relevance, the relevance between growth factor and growth ability and other aspects. First, an initial scale of measuring growth resources and capacity of start-up technology-based SMEs has been explored on the basis of many scholars' research and experts interviewed. Then, the scale is corrected by the data collected by the initial scale. After this, the paper conducts an in-depth research of the interactions among the growth factors using descriptive analysis, factor analysis and correlation analysis. Through cluster analysis the samples are clustered into three types of enterprises according to the different distribution features of enterprise growth elements. The corresponding business growth strategies have been given in the light of the theoretical research and the empirical research. The paper summarizes the growth characteristics of different types of enterprises through regression analysis, getting the growth function of each category of enterprise with the same meaning of the relevance between growth factors and growth ability. The growth process of technology SMEs is very complex. The results of this paper show that there are three important conditions to the technology-based SMEs creation, that is, the accumulation of resources, enterprise capacity transformed by resources o and the development of enterprise adaptive ability. The second conclusion of this paper is that timely adjustment of the development pattern based on the environmental changes is the key to SMEs successful development. "The matching degree of products or technologies with the market" and "the technological, innovation capability of SMEs" are the most important growth elements of technology-based SMEs growth. Meanwhile, the enterprise committed to the long-term development should pay more attention to the enterprise culture. And to the three types of enterprises, the three growth rate indicators all have the closest relevance with the "comprehensive internal capacity" factor, showing the "comprehensive internal capacity" factor is the most crucial growth factor of enterprises.