Study On The Survival And Growth Of Baotou's New Smes

With the development of Chinese reform and open, China has transformed its planned economy system into a socialist market economy system, SMEs (Small and Medium-Sized Enterprises) play an important role in Chinese economy. They expand employment, stimulate the market, increase income and so on. The research areas of SMEs have become research frontier and hot topics. There are lots of studies about the survival and growth of SMEs based on different perspectives explaining how new SMEs survive and grow in early stage.Baotou is the largest industrial city in Inner Mongolia Autonomous Region. Compared to heavy industry, SMEs have become engines of innovation and made up a huge portion of GDP and employment in Baotou. The objective of this study is to identify and explore those factors to support the survival and growth of new SMEs. In this study, by using factor analysis and AHP, the effect of entrepreneur, environment, resource, organization, strategy and government is verified firstly. Secondly, by using correlation analysis and regression analysis, the effectiveness of entrepreneurial capability, environment and strategy to growth performance of SMEs is verified. The empirical results show that resource and entrepreneur are the most important factors to the survival of new SMEs, entrepreneurial capability is the most important factor to the growth performance of SMEs. As concerns policy implementation, local government units need to focus on improving of entrepreneurial capability as well as provides an enabling environment through appropriate policies and regulations, which are all essential to SMEs. Industrial transfer brings lots of entrepreneurial opportunities to Baotou. There has been an increasing emphasis on the role which new SEMs play in the industrial transfer. SMEs would benefit the most from the transfer, so the start-up of new SMEs should be encouraged, contributing to the building of entrepreneurship-oriented city in Baotou.In comparison with existing research, this study contributes to the interpretation of differentiation of influence. According to the research finding, entrepreneurs can concentrate their attention on the most important factors and overcome resource restrains to meet growth goals, local government units can make pointed policies to improve entrepreneurship-supporting systems.