A Study On The Factors Affecting The Profitability Of Small And Medium Sized Enterprises-based On The Data Analysis On Small And Medium Enterprise Board Listed Companies

Small and medium-sized enterprise is the important strength to support the economic development of our country, in the active market economy, technological innovation plays an irreplaceable role in solving the employment, and has plays a irreplaceable role in the national economy. The development of small and medium enterprises is not only an important achievement of the reform and opening up, but also an important strength of reform and opening up. small and medium-sized enterprises participate in the competition, and have already developped a dynamic market environment. It is a long-term strategic task for our country to develop small and medium-sized enterprises. In recent years, China’s government have carried a lot of measures to support small and medium enterprises.2014, the development of small and micro enterprises entered the executive meeting of the State Council issues for the seventh times. Helping small and micro enterprise climbing over the ridge has become the work of the various departments in the financing support, financial support, simplify the administrative examination and approval and so on. From the central to the local government, it has also introduced a series of policies to support small and medium enterprises. But small and medium enterprises still exist many problems such as too small scale, low level of internal management, the disability to resist market risk, once the market downturn, there will be a greater degree of impact for them.The growth of small and medium enterprises in China is not optimistic because of many internal and external factors, showing a "short life, high death" phenomenon. To effectively promote their ability of long-term survival and growing sustainable has become common concern of the macro policy making department and firm managers. How to improve the profitability of small and medium enterprises and how to make it survive better and develop in the competitive market environment have gradually become an important research topic.Based on the above analysis, this paper studies the relevant factors that influence the small and medium-sized enterprise profitability.It can be seen from the above analysis, the research on the influence factors of the small and medium-sized enterprise’s profit ability has some practical significance and theoretical significance. Based on the analysis of relevant theory, this paper will be divided these factors into two aspects:internal and external. Known by the enterprise ability theory, the source of enterprise’s competitive advantage in enterprises have ability and knowledge of the heterogeneity. Therefore. This paper choose the internal financial indicators to represent the internal factors that can influence the enterprise,the factors include choice of competitive strategies the ability of sustainable development.At the same time, this paper based on macro environment and industry environment related theory analysis and research, respectively, starting from the two aspects of macro environment and industry environment, the external factors of impact on the profitability of small and medium-sized enterprises, mainly from the government support policies for small and medium-sized enterprises, small and medium enterprises with customer and supplier relations of cooperation and small and medium-sized enterprise market position and so on several aspects of external factors were studied. Through theoretical analysis and empirical findings:1 Enhancing the existing business stability of small and medium enterprises can improve the profitability of small and medium enterprises, and scientific research level of their profitability is not obvious, but small and medium enterprises should strengthen the management and standardization of scientific research activities, so that it can play its due role; 12there is a significant positive correlation between the Differentiation level and profitability of small and medium-sized enterprises;3 in industrial environment, there is a significant positive correlation between the profitability of small and medium-sized enterprises and cooperation degree of the upstream and downstream enterprises, and also there is a significant positive correlation between the profitability of small and medium-sized enterprises and market share, optimization the industry environment of small and medium-sized enterprises can improve its profitability; 4 In policy environment, government subsidies can improve the profitability of small and medium-sized enterprises, and cashes borrowing from financial institutions have a negative correlation with the enterprise profit, but this is not through the significant test. The reason lies in the low level of internal management of small and medium-sized enterprises, they can not effectively use the funds, small and medium enterprises should use the financial institutions lending effectively. Finally, according to the research results, the paper puts forward the corresponding policy recommendations.This article is divided into a total of six parts, the first part introduces the background and significance, as well as the basic idea of the paper and research framework, on this basis, further illustrate the research methods and the paper’s main innovation; the second part is the literature review, first of all we introduce domestic and foreign literatures on the evaluation indicators of the profitability of the enterprise review,and study on the related factors that influence the growth of small and medium-sized enterprise development, through literature review, we summarizes the research results of scholars at home and abroad, and actively learn from the advanced research results, for the writing of this article motivating; the third part is the theoretical analysis, Including depicting definition of the related concept, characteristics on the profitability of the enterprise,,factors of influence both from internal and external aspects on the profitability of small and medium-sized enterprise,these theoretical analysis provide a theoretical basis for the empirical analysis below; fourth part of the study design, the overall elaboration and generalization of empirical research design issues, including the proposed hypothesis, the study sample data selection standards, the selection of the study variables and sample descriptive statistics; fifth part is empirical testing and results analysis focuses on the design of the regression model, empirical verification process to make analysis to determine the empirical results, and then make test; part VI of conclusions and recommendations based on the research of above two aspects of theoretical and empirical analysis, here for the conclusion to be summarized and put forward relevant policy recommendations, as well as prospects for the future.