Question

discuss the importance of innovation in the small and medium enterprise

Answer 1

Innovativeness means creativity.Small and medium enterprises are non subsidiary small independent firms,employing few employees. They are flexible production structures and help in creating new jobs, increase exports and leads to economic growth. .Innovative ideas in business help a business to grow.The successful exploitation of new ideas is important in a business .A business can improve its business process with new ideas . Businesses can bring new and improved products in the market with innovation , increase efficiency in the market with innovation,and improve profitability in the market.SME's are major source of technological progress and helps in development of new and innovative products.Innovation is needed for development of small and medium sectors in different countries mostly in developing countries, towards generation of income and regional development.The SME's have been regarded as one that have brought equitable growth and sustainable development.