Under the condition of market competition, the success and the failure of the enterprise management is normally regarded as the result of “superior winning while inferior out”. Yet for the community of theorists and entrepreneurs, what are the reasons leading to the enterprise bankruptcy or successful are important research topics.

Among the small and medium-sized enterprises in China, most are loose and innovating slowly in their business management. The lower competitive ability has become the serious barrier for their sustainable development. Comprehensive analysis are made on the positive factors and adverse factors affecting sustainable development of small and medium-sized textile enterprises of Shandong Province according to on-the-spot investigations. How to gain and maintain the continued survival and development ability of the enterprises, and how to enhance competitive ability and realize the sustainable development are analyzed. And three kinds of development strategies are put forward.