The SME Performance Evaluation Based On EVA

China’s economy is being a period of great transformation at present. The operating level of small and medium enterprises has a direct impact on China’s economic development, which is the main body of China’s real economy. However, small and medium-sized enterprises in our country still have many problems, such as big operational risks, financing difficulties, which are affecting the development of SME. How to measure the level of performance better for China’s small and medium enterprises become a pressing issue, as well as improve the business performance of SME, which is also the ultimate goal of this research.The paper constructs performance evaluation index system of SMEs in China Based on EVA. At first, we do some appropriate adjustments to EVA index in according to certain adjustment though, on this basis, establish a three-dimensional about profitability, growth and risk-balance index system based on EVA. EVA as a new performance measure index, is different with the traditional index and has a certain amount of its own advantages. The aim of this study is to adjust the EVA that followed the new accounting system and to apply it into the performance evaluation of China’s small and medium enterprises, which can promote the use of EVA index in the evaluation of the performance on SMEs in China. On the empirical study, the paper combined with the adjustment formula to calculate the EVA of listed companies of SMEs in China, measure performance of overall and industry about listed SMEs in China and research impact and drive variables of EVA index value through regression analysis to be in-depth study. Secondly, classified the factor of the index system by factor analysis and calculated each factor score of SMEs in order to obtain the operating performance level of China’s small and medium enterprises.The results show that the overall level of business performance of SMEs in China is not high, only half of them have real wealth creation for shareholders. Size has a certain impact on the performance evaluation results. Investment and taxes, as well as their own operating capacity have a greater impact on the economic value added. The most important thing to ultimately improve the level of business performance of SMEs in China is to improve the profitability, operational efficiency and to achieve the balance of profitability, growth and risk.