A new approach factor- entropy with application to business costs of SMEs in Shanghai

Business cost is acknowledged as one of the priorities in SMEs research. In this study، the business cost of SMEs in Shanghai was primarily measured using Factor- Entropy analysis method. The purpose of this study is to effectively resolve the issue of simplification and assignment evaluation index system on business costs of SMEs in Shanghai. However، this study uses factor analysis to interpret the data on indicators، through a cross-sectional survey، considering the objective empowerment with entropy method. It was shown that factor-entropy method to evaluation index system has advantages. The samples selected involves 309 executives and managers of 16 SMEs in shanghai that are in support of the development funds of Shanghai SMEs in China in 2013. Finally، Factor-Entropy analysis method is a combination of subjective and objective evaluation method، which are the indicators of the main component indexes calculated entropy valves and sorting with scores. The results show that the impact of the external environment (Policies and market-oriented operation) in the Multi-target of Business-cost was significant and positive. The value obtained in this study is to provide an applicable unique measurement method to situations where the necessary information is insufficient for complex or fuzzy systems and relations، and mainly identify and evaluate information of business costs in small medium-sized businesses in Shanghai.