Focusing on the urban governance objectives of “compactness and efficiency, functional mix,” this paper examines, from the perspective of external form, the nonlinear relationship between urban morphological compactness and the growth of manufacturing enterprises. From the perspective of internal functionality, the study finds that both functional compactness and job-housing balance significantly enhance the positive effect of external morphological compactness on enterprise growth. The development of industry-city integrated development zones, by promoting internal functional compactness and job-housing balance, can strengthen the facilitative effect of compact urban morphological layouts on the growth of manufacturing enterprises.