The importance of innovation in small and medium-sized enterprises : success factors and challenges
Thesis
This dissertation investigates the concepts of entrepreneurship and innovation and examines their interconnection. The first chapter analyses into the definition and characteristics of entrepreneurship, exploring the motivations that drive entrepreneurial activity and categorizing its types. It’s also considers the external factors influencing business intentions and addresses the challenges entrepreneurs face, such as securing funding and overcoming to business creation. The second chapter discusses the concept of innovation. The types of innovation found in the literature are analysed. It further lists the sources of innovation, the determinants of innovation development as well as the sources of information that are utilized for the benefit of innovation. The third chapter explores the relationship between innovation and entrepreneurship, outlining relevant economic theories that encompass both concepts. Its highlights the links between entrepreneurship, innovation, trust and institutional frameworks, illustrating their interconnectedness. The fourth chapter shifts its focus to small and medium-sized enterprises (SMEs).It defines SMEs and outlines their characteristics, analysing their position and strengths in the global market. Additionally it examines how SMEs can gain and sustain a competitive advantage while referencing the institutional and regulatory frameworks that define them. Chapter Five analyses the external environmental factors affecting entrepreneurship and innovation, including their impact on SMEs, It outlines how these external factors shape the development and role of SMEs within the contemporary economy. Lastly, the dissertation evaluates the impact of innovate activities on SmEs.This section discusses factors associated with innovate actions, emphasizing the importance of measuring and implementing innovation effectively.