Abstract: A detailed analysis on the Small and Medium sized Enterprises (SMEs) survival and its determinants are conducted, based on a sample of 54,573 new-registered industrial SMEs in Hunan Province, whichs capitals are all below 10 million Yuan and establish during the period of 1998-2007. The main research methods used are life table method and accelerated failure time model, they are mostly used in the survival analysis. The empirical results show that the risk of enterprise death follows a U-shape pattern relationship with the time for SMEs in Hunan Province, and the death risk begins to increase after nine and half years since the establishment of enterprises. The indicators, such as the original size of enterprises, industrial sector size, industrial added value rate, sales margin and profit tax rate of output value, all have significant positive impacts on business survival. However, the industry growth, liquidity capital turnover rate, and all-personnel labor productivity have no significant correlation with the business survival; Monopoly enterprises have better living conditions, the SMEs with high intensive technology have worse living conditions, SMEs located in agglomerate regions have greater risk of death. The interest rate has a significant negative impact on the survival of SMEs. While the GDP growth rate based on the city-level has a significant positive impact on the survival of SMEs. Vis-à-vis private enterprises, the survival performance of state-owned enterprises and foreign-funded enterprises in Hunan Province are even worse.

Key words: SMEs, survival, efficiency, life table method, accelerated failure-time model