The General Structure for the Dynamic Evolution of SMEs’ Growth

The goal of this paper is to establish a general framework for the structure of the dynamic evolution of small and medium-sized enterprises’ (SMEs) Growth by following Schumpeter’s economic development theory due to the Innovation under the paradigm of technology capital economy. Based on the stochastic resonance characteristics of stochastic dynamics, this paper puts forward a quantitative analysis method for the optimal ownership structure and capital structure decisions under the dynamic risk scenario. The analysis based on the framework established in this paper shows that although the growth of SMEs depends on many factors, including capital structure, investment preference and internal risk level, the dynamic optimal equity structure of SMEs always corresponds to the value at risk response (VaRR), that is, the new concept of the VaRR , which is used to shows that the growth and development of SMEs with dynamic optimal ownership structure can always bring about a significant reduction of the risk of bilateral collaborative cooperation based on technological innovation and capital allocation transformation paradigm, at the cost of less systematic risk, which is conducive to the development and growth of enterprises. In addition, the dynamic evolution of the growth of SMEs shows that their development shows some important non monotonic characteristics, such as the stochastic resonance (SR) phenomenon in the internal risk level of enterprises, and the working capital leverage also presents generalized stochastic resonance (GSR), which indicates that the internal risk level of SMEs in the growth process has a certain degree of uncertainty in the controllable range, and the working capital leverage has a certain degree of flexibility, which is beneficial to the development and change of the company, Instead of what we used to think, these uncertainties always bring negative harm to the development of the company! These deep characterization results of the dynamic evolution of the growth of small and medium-sized enterprises will provide very useful enlightenment for us to design the decision-making rules of capital optimization, risk management and growth path regulation of small and medium-sized enterprises in practice.