Small and Medium sized Enterprises (SMEs) are becoming increasingly innovative in order to remain competitive. From an entrepreneurial perspective there has been an increasing reluctance from entrepreneurs and small firm owners on this changing role of growth and innovation. Current findings highlight that majority of SMEs in the United Kingdom do not actively employ other people (Small Business Service, 2004) and for those that do, only a small majority engage in innovation (Gray, 2006). Scottish policies have encouraged growth and innovation in SMEs. However, there is still reluctance amongst owners to an extent.
Table of Contents
- Introduction
- Research question
- Research objectives
- Literature Review
- Definition of SMEs
- SMEs in Scotland
Objectives and Key Themes
The main objective of this research is to investigate the relationship between growth and innovation in Small and Medium-Sized Enterprises (SMEs) in Glasgow. The study aims to define SMEs, explore existing literature on the growth-innovation nexus within SMEs, test the validity of this relationship within the Glasgow context, and ultimately offer recommendations for promoting growth and innovation in these businesses.
- Definition and characteristics of SMEs
- The relationship between growth and innovation in SMEs
- The impact of external factors (e.g., competition, recession) on SME growth and innovation
- The role of government support in fostering SME growth and innovation
- Strategies for promoting growth and innovation in SMEs
Chapter Summaries
Introduction: This introductory chapter sets the stage for the research by establishing the increasing importance of innovation for SME competitiveness, highlighting the reluctance of some entrepreneurs to embrace this change, and noting the existing support systems for Scottish SMEs despite persistent challenges. It introduces the central research question: "To what extent is there a relationship between growth and innovation in Small and Medium Sized Enterprises in Glasgow?" The chapter concludes by outlining the research objectives, which focus on defining SMEs, reviewing relevant literature, testing the relationship between growth and innovation, and generating practical recommendations.
Literature Review: Definition of SMEs: This section provides a critical examination of various definitions of SMEs, showcasing the inconsistencies across different organizations such as the European Union Commission, the World Bank, and the UNDP. It emphasizes the lack of a universally accepted definition due to variations in size, employment, and sales figures. However, despite these variations, the chapter highlights common characteristics across SMEs, such as entrepreneurial management styles, small market shares, and independence from larger organizations. It concludes by presenting the operational definition of SMEs used in this study, aligning with Scottish government guidelines.
Literature Review: SMEs in Scotland: This part of the literature review acknowledges the limited existing research specifically on the innovation and growth of Scottish SMEs. Therefore, it leverages broader international literature on SME growth and innovation to contextualize the Scottish situation. The chapter uses existing literature on Scottish SME performance to provide a background. It then defines growth and innovation in SMEs, drawing on existing literature that shows innovative SMEs experience growth in profit, sales, and employment. The chapter also notes that some researchers argue for a threshold of at least 20% growth in sales and profit over three consecutive years before classifying growth as innovation-driven.
Literature Review: Innovation in SMEs: This section traces the evolution of research on innovation in organizations, starting from Schumpeter’s early work in the 1930s and highlighting the shift in focus from individual entrepreneurs to teams in the later decades. The chapter discusses the transition from an individual-centric view of innovation (attributing success to individual entrepreneurial attributes) to a team-process view, where collaboration and teamwork are considered crucial for driving innovation. It explains that the team-process view arose from the difficulty of replicating the attributes of highly innovative individuals. The chapter concludes by introducing Bhave's (1994) framework, distinguishing between internally and externally triggered innovation based on the source of the stimulus for innovative activity.
Keywords
Small and Medium-Sized Enterprises (SMEs), growth, innovation, entrepreneurship, Scotland, Glasgow, government support, competitiveness, economic development, research and development, team process.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main objective of this research?
The primary goal is to investigate the relationship between growth and innovation within Small and Medium-Sized Enterprises (SMEs) located in Glasgow, Scotland. This involves defining SMEs, reviewing existing literature on the growth-innovation link in SMEs, testing this relationship in the Glasgow context, and providing recommendations to foster growth and innovation in these businesses.
What are the key themes explored in this research?
Key themes include the definition and characteristics of SMEs; the relationship between growth and innovation in SMEs; the influence of external factors (like competition and recession) on SME growth and innovation; the role of government support in promoting SME growth and innovation; and strategies for enhancing growth and innovation within SMEs.
How are SMEs defined in this research?
The research acknowledges the lack of a universally accepted definition of SMEs, highlighting inconsistencies across various organizations. It examines definitions from the European Union Commission, the World Bank, and the UNDP, emphasizing the variations in size, employment, and sales figures used. The study ultimately adopts an operational definition aligned with Scottish government guidelines.
What is the research question addressed in this study?
The central research question is: "To what extent is there a relationship between growth and innovation in Small and Medium Sized Enterprises in Glasgow?"
What does the literature review cover?
The literature review encompasses several key areas: definitions of SMEs, examining existing literature on the growth-innovation nexus in SMEs, specifically in Scotland (or using international literature to inform the Scottish context), and an exploration of innovation in SMEs, tracing the evolution of research from individual-centric to team-process views, including Bhave's (1994) framework on internally and externally triggered innovation.
What are the chapter summaries included in the preview?
The preview includes summaries of the introduction (setting the research context and outlining objectives), the literature review sections on SME definitions, SMEs in Scotland, and innovation in SMEs. Each summary provides a concise overview of the content and key findings of the respective chapter.
What are the key words associated with this research?
Key words include: Small and Medium-Sized Enterprises (SMEs), growth, innovation, entrepreneurship, Scotland, Glasgow, government support, competitiveness, economic development, research and development, and team process.
What is the significance of the Glasgow context in this research?
The research specifically focuses on SMEs in Glasgow to investigate the growth-innovation relationship within a particular geographical and economic setting. This allows for a more targeted analysis and the generation of recommendations relevant to that specific context.
What types of growth and innovation are considered in this study?
The study considers growth in terms of profit, sales, and employment, and innovation is examined from various perspectives, including the evolution of research on innovation from individual-centric to team-process approaches. The study also mentions a threshold of at least 20% growth in sales and profit over three consecutive years as a potential indicator of innovation-driven growth.
What are the practical implications of this research?
The research aims to provide practical recommendations for promoting growth and innovation in SMEs in Glasgow and potentially inform policy decisions related to government support for SMEs.
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- Sherry King (Autor:in), 2011, Growth and innovation in SMEs in Glasgow, München, GRIN Verlag, https://www.grin.com/document/269803
