Simulation Study Of Sustainable Growth Strategy Of SMEs

Currently, SMEs have become an integral part of the development process of a backbone of the national economy. Meanwhile, the vast majority of SMEs are always faced with the dilemma of "no live long" and "no growth up". Therefore, the issue of sustainable growth of SMEs has become an important issue affecting the trend of China’s economic.The growth of SME is a complex and dynamic process. And it has a variety of dynamic behavior in the real world. We have to study from a system perspective. Then we can fully understand and grasp the typical behavior patterns of the growth of SMEs and their determinants.Firstly, this article study the characteristics of SMEs in different life-cycle based on the theory of business growth and business continuity theory. Then proposed a theoretical model about sustainable growth of SMEs. And analysized the factors effecting the sustainable growth of SMEs and the principle of their mutual influence qualitatively and quantitatively using causal diagrams and stock flow chart tool. Then take X auto parts enterprise as an exampl, and study the effect of the four strategic to achieve sustainable growth of SMEs quantitatively using simulation under different external environment and business status(auto parts enterprises). The following conclusions based on auto parts enterprises:①The sustainable growth of SMEs is decided by endogenous and exogenous factors. The endogenous factors interact and interact each other. It contains a lot of feedback loop. Though there are only three main negative feedback loop, but they affect whether SMEs can break through the bottleneck of growth. ②Although the "free rider" strategy needs less capital, and the performance is good in the beginning, it didn’t work well in the future because of the low technical barriers. And the companies did not achieve growth in "quality". ③ The more serious the monopoly is, the better the "free rider" strategy shows; ④ It need enough money to implement the innovative differentiation strategy. Otherwise, companies may collapse because the rupture of capital chain. ⑤The alliance strategy has the most obvious effection on sustainable growth of SMEs. It has not only good potential of growth, but also a strong ability to resist risks.Finally, it proposed some guidance about how to make internal construction for the sustainable growth of SMEs. And there are some suggestion for the government to improve the external environment.