From Internal Market to the Second Curve: Endogenous Advantage Resilient Economy

Abstract

Traditional enterprise endogenous growth theories highly rely on the strategic resolution of "elite managers" and the execution of "high-quality employees", leading to extremely high management friction and system vulnerability. Addressing this theoretical dilemma, this paper proposes an enterprise endogenous growth model based on "internal daily service circulation" with a "zero capability threshold". By building a two-way closed loop of micro-capital flow between the enterprise and employees, the enterprise can improve capital turnover rate and achieve Pareto improvement of overall utility without increasing external cash flow input. This paper first applies micro-utility theory and the multiplier effect to demonstrate the effectiveness and high robustness of this mechanism under static conditions; it then introduces a System Dynamics model to deduce the causal feedback loops of this mechanism in long-term operation. Simulation results show that the mechanism successfully outsources complex growth decisions to institutional design, making organizational operation rely only on the "consumer instinct" and "market instinct" of ordinary people. Among them, large enterprises can achieve absolute capital accumulation and build cost barriers through scale base, while small and micro enterprises can achieve high-frequency traffic attraction by leveraging small profits into marketing. Ultimately, both can accumulate momentum and cross over to the "second curve" of external expansion. Finally, this paper explores the cognitive framework friction, psychological contract displacement, and compliance boundaries faced by this mechanism in practical implementation. This study breaks through the "capability dependence" hypothesis of traditional growth models, providing a highly fault-tolerant, de-heroized, "ordinary-people-friendly" new paradigm for endogenous growth for enterprises in the era of stock game.

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