Abstract:Considering the asymmetric financing costs, the articlebrings the options game theory of uncertainty, irreversibility and competition and information asymmetry into study, and form an asymmetrical duopoly investment decision-making model based on the difference between the market competitive advantages. Through the simulation experiments, we find that a competitive advantage can inspire the leader to start investing earlier, whereas followers have a competitive advantage can avoid the threat of other companies to beat into the market. In addition, to the changes of the financing costs, the critical value of the enterprise follower is more sensitive than the leader’s. Enterprises reduce the financing costs can obtain relatively high income. Finally, combined with the management cost, construction time, and government subsidies impact on the enterprise competition, the article concludes the theoretical explanation about the UMKM building competitive advantage, alleviating the pressure of financing costs and achieving leapfrog development.