When we look back the developing of Taiwan’s economic during the past half decade, although government had appropriate policies and environment control, middle size and small size business had contributed the large portion of Taiwan’s economic miracle. During this period, small business had grown stably became large business. During these transformation steps, small business had faced many technical and political problems. Therefore, how to develop the appropriate policies and new techniques are the major topics for business and industry to discuss. This research is focused on the internal and external environments that have influence to small size and middle size business, and trying to find solutions for business to setup appropriate policies and help them to solve these problems.