Empirical research on existing quantity of small and medium-sized enterprises in China, based on system dynamics

Empirical research on existing quantity of small and medium-sized enterprises in China, based on system dynamics

Wang Mingpeng1, Sun Qiming2

COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(1) 129-135

1 School of Economics and Management, Beijing University of Posts and Telecommunications, Room 508, Teaching Building 1, Beijing University of Post and Telecommunications, No.10 Xitucheng Road, Haidian District, Beijing, China,
2 School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing University of Post and Telecommunications, No.10 Xitucheng Road, Haidian District, Beijing, China


A system model for the existing quantity of small and medium-sized enterprises is built in this document, by establishing relationship equations with study on relationships among more than 30 variables such as total enterprise quantity, establishment rate of new enterprises, level of human resources, level of technical innovations, index of resource dependence, etc. Moderate breakthroughs are made on the mathematical methodology, such as the method of education years to calculate the level of human resources, the method of resource dependency evaluation for the resource dependency index. However, certain corrections are made for adaptation to the study. The innovative concept of establishment rate of new small and medium-sized enterprises is created in modelling and correlated with level of technical innovations, level of human resources and resource dependency index through relationship functions. The purpose thereof is to explore mechanisms where and extents to which influence factors make impact on the existing quantity of small and medium-sized enterprises. Finally, emulation prediction for the system model is made with the emulator Vensim and the error analysis on comparison between emulation and historical data is performed. It is found that the agreement with historical data is good and the error is acceptable.