Small and medium enterprises development in scientific and innovation perspective
Abstract
Small and Medium Enterprises (SMEs) are critical components for any country. It demands systematic examination based on theory and proves its significance. In our case, finding explanations is required why SMEs are important, about its historical background and what it would deliver in the times to come. As the issue of SMEs is yet to recognize by the respective governments over time, it is inevitable to identify and find way out to address the concerns of the sector. The main objective of the paper is to make an inquiry into the increasing importance of SMEs in Nepal. While analyzing Nepal's SMEs, European SMEs are taken into consideration including other countries in an innovation perspective and technology transfer. Based on the empirical evidence and innovation theory of management propounded by the world-renowned scientists, we have tried to find solutions scientifically related to the weak absorptive capacity of SMEs to go in an innovative way for their advancement and technology transfer in Nepal SME as the role of SMEs is deemed critical for job creation and economic growth. The lessons from European and other developed economies could transform SMEs into more productive ones through innovation and push for the sustenance in the long run. The research shows that defining the SMEs in the Act itself is not sufficient to promote the sector. Rather, the SMEs should be advanced through the adoption of innovation management techniques and technology transfer with facilitation from acknowledgment management and partnership approach to their sustainability. Conclusion: the country needs to adopt a strategy to define the SMEs in a professional manner like other countries; introduction of some rules and regulations to encourage the sector in terms of incentives and finance; introduction of SME Policy to consolidate SMEs, which also needs to focus on technology transfer and knowledge management for adopting innovative approach for the advancement of the sector.
Downloads
References
Ahmed, M., U. [2016]. A Theoretical Framework for Analysing the Growth. International Journal of SME Development, University of Dhaka, Bangladesh, Issue 02
Anand, B. [2015]. Reverse Globalization by Internationalization of SME’s: Opportunities and Challenges Ahead, ScienceDirect, Volume 195, Pages 1003-1011
Belás, J., Ključnikov, A., Vojtovič, S., Sobeková-Májková, M. [2015], Approach of the SME Entrepreneurs to Financial Risk Management in Relation to Gender and Level of Education, Economics and Sociology, Vol. 8, No 4, pp. [32-42]. DOI: 10.14254/2071-789X.2015/8-4/2
Caetano, M., Amaral, D. [2013]. Strategic Innovation Planning and Partnerships: Aligning Market, Products/Services/Processes and Technologies. Technology and Investment, Vol. 4 No. 1, pp. [1-6]. doi: 10.4236/ti.2013.41001.
Sidorov, V., Babenko, V., Bondarenko, M. [2017]. Researching factors of innovative activities of agrarian business of Ukraine under globalization of the world economy. Innovative technologies and scientific solutions for industries, No. 2 (2), pp. [70-76]. doi: https://doi.org/10.30837/2522-9818.2017.2.070
Cooper,J. R. [1998] A multidimensional approach to the adoption of innovation, Management Decision, Vol. 36 Issue: 8, pp.[493-02], doi.org/10.1108/00251749810232565
Drucker, P., F. [2006]. Classic Drucker. USA: Harvard Business School Publishing Corporation.
European Union. [2015]. User guide to the SME definition. Luxembourg: Publications Office of the European Union
IFC. [2012]. Small and Medium Enterprises: Key Driver for Growth and Jobs for South Asia.New Delhi, India. IFC, The World Bank Group.
Block, J. H., Fisch C. O., van Praag, M. [2017], The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behavior and consequences of innovative entrepreneurship, Industry and Innovation, 24:1, [61-95],DOI:10.1080/13662716.2016.121639
Krasota, et al. [2017]. The Changing Priority of the State regulation in Small Business Development. Scientific Bulletin of Polissia. UDC 334.012.64, 334.012.65, 334.021
Liu, M. [2016]. A Study of the Market Failure in the Financing of High-Tech SMEs and the Governmental Intervention. Open Journal of Social Sciences.
Ministry of Law. [2016]. Industrial Enterprises Act. Kathmandu: Ministry of Law, Justice and Parliamentary Affairs.
Nepal Government. [2001]. Industrial Development Perspective Plan:2020. Kathmandu: Ministry of Industry.
O’Gorman, P. R. [2016]. Innovation Processes: Do They Help or Hinder New Product Development Outcomes in Irish SMEs? Irish Journal of Management, 5(1) 2016 [88-03]DOI: 10.1515/ijm-2016-0006
Pula, J. S., Berisha, G. [2015]. Defining Small and Medium Enterprises: A Critical Review, Academy Journal of Business, Administration, Law and Social Sciences. Vol 1 No 1
Sandal, J.-U. [2017]. In the footsteps of the early Joseph Alois Schumpeter. Finstadjordet, Norway: Sandal Institute.
Schumpeter, J., A. [1934/2008]. The Theory of Economic Development. USA: Transaction Publishers.
Vanhaverbeke, S. B. [2015]. Open Innovation in Small and Medium-Sized Enterprises (SMEs): External Knowledge Sourcing Strategies and Internal Organizational Facilitators. Journal of Small Business Management. 2015 53(4), pp. [1241–1263], doi: 10.1111/jsbm.12120
Yan, D., S. [2015]. A Theoretical Framework of Competitive Advantage for SMEs in China under New Normal Economy. European Scientific Journal.vol.11, No.34 ISSN: 1857 – 7881
Yüzbaşıoğlua, N., et al. [2014]. A research on innovation in small and medium-sized enterprises in the tourism industry: the case of travel operating in Antalya. Science Direct. Procedia – Social and Behavioral Sciences 150 ( 2014 ) [735 – 743]
Zizlavsky, O. [2016], The Use of Financial and Nonfinancial Measures within Innovation Management Control: Experience and Research, Economics and Sociology, Vol. 9, No 4, pp. [41-65]. Doi: 10.14254/2071-789X.2016/9-4/3
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication of this work under the terms of a license Creative Commons Attribution License 4.0 International (CC BY 4.0).
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
