FOR SMALL AND MEDIUM-SIZED ENTERPRISES (SMES PROMOTING ENTREPRENEURSHIP AND INNOVATIVE SMES IN A GLOBAL ECONOMY
Small and Medium-sized Enterprises (SMES Promoting Entrepreneurship and Innovative SMES in a Global economy Towards a More Responsible
enterprises (SMES), especially innovative ones, can make to better economic performance, notably in terms of jobs and
enterprise creation, fostering entrepreneurship and facilitating the growth and prosperity of SMES once established. Still
and enterprise creation Creating a business environment conducive to entrepreneurship and enterprise creation in which
innovative young firms have scope to expand rapidly once they have established themselves requires a broad range of
way these structural policies affect enterprise creation and small businesses should be taken into account in their
have an impact on entrepreneurial activity and enterprise performance. However, in spite of the numerous initiatives launched and implemented in recent years, a number of
rates of enterprise creation is an almost universal concern for local authorities who seek to accelerate development or
New enterprises can procure a range of benefits that contribute to local development, including: rises in employment and incomes
Determinants of rates of enterprise creation at the local level include demographics, unemployment, wealth the educational and occupational profile of the workforce
programmes and support policies for small enterprises which may be complex and involve scarce resources. Many
share of medium-sized enterprises engaged in exporting is more than twice that of micro-enterprises. 4
â US experience suggests that exporting SMES often confine their efforts to one market â A 2001 survey of European enterprises showed that
around one-third of SMES report an increasing number of international business contacts, ranging from 30%for
micro-enterprises to 50%for medium-sized enterprises. 5 â Few SMES invest abroad. A recent survey showed that only
chains of multinational enterprises. Indeed, foreign direct investment is often an efficient way to diffuse technology and
supply chains of multinational enterprises, and their resultant (indirect involvement in exporting activity can lead to significant diffusion of technology
1. In European countries, only enterprises in the business sector, but excluding NACE activity E (electricity, gas
The source for these data is the Eurostat Community Survey on enterprise use of ICT.
and only includes enterprises with NZD 30 000 or more in turnover. Switzerland includes the industry, construction and service sectors
OECD, ICT database and Eurostat, Community Survey on ICT usage in enterprises 2002, May 2003
Whereas large enterprises can afford specialised staff, SMES must often rely on the qualifications and training of their general workforce.
government services to enterprises should be used as a tool to improve efficiency of government interactions and operations with SMES
Enterprises in transition and developing economies face major challenges in strengthening their human and institutional
is enterprises that trade and invest. Therefore, supply-side bottlenecks in the trade and investment areas and the way
Most enterprises in transition and developing countries are SMES. These firms typically account for more than 90%of
conducive to enterprise creation and growth; the ability of SMES to implement competitive operating practices and
M. Ayyagari, T. Beck and A. Demirgã c-Kunt, â€oesmall and Medium Enterprises across the Globeâ€, World
enhancement and enterprise development through linkages and spillover effects. These include backward linkages with suppliers, forward linkages with customers, linkages with
enterprises and about supply opportunities to potential suppliers through the development of a national Web site
â Working closely with multinational enterprises by inviting them to help potential suppliers to a) understand
enterprises and potential suppliers â Helping SMES that have the potential to supply multi -national enterprises to identify their needs and then to
access the public and private support services they need â Offering some form of monetary incentive to multi
-national enterprises and local SMES to participate in the linkage programme. This could include contributing to
-national enterprises which devoted time to supplier upgrading (Singapore; cash grants to promising suppliers to help with initial investment costs (Ireland;
trickle down effects, including to micro-enterprises as lower-tier suppliers  OECD 2004 35
and enterprises able to provide information on markets and standards, advice on strategies, and access to technology and innovation coupled with appropriate
enterprises to local SMES. Spillovers of knowledge and management skills to local firms are one of most critical benefits of foreign direct investment for host countries
Support policy frameworks and multinational enterprise behaviour that facilitate such spillovers and better document real-world cases to increase public
Enterprise Investment Scheme) 2 590 Total 7 932 as a per cent of GDP)( 0. 8
the creation of new firms, the growth of existing firms or promoting enterprise among target groups in the population
introduce a single identification number for enterprises, so that data from different sources can be matched. It also requires that policy makers address
of policies on enterprise performance and growth as well as differences across OECD countries  OECD 2004 41
numbers for enterprises and their use to link data more efficiently, and greater use of administrative sources of data
and medium enterprises exhibits some peculiar features that most traditional indicators of innovation activity would not capture,
Economyâ€, European commission DG-Enterprise, Brussels Crã pon, B.,E. Duguet, and J. Mairesse (1998), â€oeresearch, Innovation and Productivity
Enterprise Directorate-General Griffith, R.,E. Huergo, J. Mairesse, and B. Peters (2006), â€oeinnovation and Productivity
Enterprises Sponsored Research Prepared for United states Department of commerce The National Institute of Standards and Technology Manufacturing Extension Partnership
ENTERPRISES...5 2. 1 Generalizations about SMES and Innovation are Difficult to Make...5 2. 2 Types of Innovation that SMES Undertake...
Table 5. 2 Cultural Attributes of Successful Innovative Enterprises...45 LIST OF FIGURES Figure 3. 1 Share of Service Sales/Spending Volume by Type...
how small and medium-sized enterprises (SMES) develop new products and services. Our team extensively reviewed the literature for concepts and research on new product and service
ENTERPRISES The purpose of this report is to explore how small and medium-sized enterprises (SMES) can
enhance their competitiveness with innovation strategies that leverage their strengths and minimize their weaknesses relative to larger enterprises.
These strategies can involve partnering with large enterprises rather than competing against them. To achieve our purpose,
we must first recognize that a single set of recommendations is not appropriate for all SMES because their
enterprises, and most of the existing research on innovation was developed from studying the latter. Lastly, given all of the above qualifiers, we explore SME innovation strategies that
This tends to make them more cautious about innovation than larger enterprises. There is a 9
form cross-functional teams more easily than large enterprises because their professional specialization is less complete.
innovation, particularly when embedded within a manufacturing enterprise. We will return to this issue in the recommendation section
Table 5. 2 Cultural Attributes of Successful Innovative Enterprises 46 to get employees involved. Internal marketing is one way that firms â€oesell†the service concept to
In Figure 6. 2, the shifting market value of enterprises largely from tangible to intangible assets Hand and Lev, 2003) leads us to believe that knowledge,
Dynamic knowledge management. Many large enterprises have invested millions in creating knowledge management systems based on attempts to catalog knowledge to be searched and
Compares US large enterprises (LES) vs. US and Canadian SMES on 14 sources of innovation.
Small and Medium-Sized Enterprises and the Global economy. G. I. Susman. Northampton Edward Elgar Describes small firm collaboration and networking
"The use of strategic tools by small and medium-sized enterprises: An Australasian study.""Strategic Change 12 (1): 49-62
Small Business and Enterprise Development 9 (1): 61-72 Discusses small firms and their attitudes towards change
medium-sized enterprises: Some Australian evidence.""Journal of Small Business Management 40 (1): 27-42
Innovating within established enterprises.""Harvard Business Review 82 (7/8): 86-91 Discusses choosing between radical and incremental innovation on the basis of market
-sized enterprises.""R & D Management 21 (2): 125-137 SMES have some advantages (flexibility) and disadvantages (unable to spread risk across
development process of small and medium enterprises (SMES) in China, Hong kong and Taiwan.""Industrial Marketing Management 35 (3): 323-335
enterprises make their impressive contributions to innovation because of several advantages they possess compared to large-sized corporations.
large enterprises in order to improve their ability to access and absorb innovations â'The cluster strategy, in which SMES locate in close proximity with competitors in order to
Some enterprises, especially small and medium-sized firms, choose to pursue increasingly specialised markets or innovative niches,
and medium-sized enterprises consider it important to undertake such global investments because of the demonstration effect--to show potential customers and business partners that they are committed to the
Nevertheless, the small-and medium-sized enterprises of Germany have not been able to overcome the risks inherent in a high degree of specialisation, and
when the technology dominates the enterprise and scientists and engineers are the driving force in the enterprise,
customer satisfaction tends to suffer and demand shifts elsewhere. Conversely, when the marketing department is the driving force behind the
enterprise, technological sophistication is affected. While customers may be satisfied in a static sense, the enterprise is not engaging in dynamic product development,
which leaves it vulnerable to competition from more technologically advanced companies. Customers eventually reward technological leaders that can
conflicting customer demands is a delicate strategy that only a very flexible enterprise, which has both
and cooperate with other firms be they other SMES, large enterprises, or a combination of both.
the region†s enterprises often cannot afford individually. These networks defy sectoral barriers individuals move easily from semiconductor to disk drive firms or from computer to network
established, and new enterprises are decentralised conceived†This and fluid environment also promotes the diffusion of intangible technological capabilities and understandings. †13
Groups of enterprises working in the same product are seedbeds for the exchange of new ideas.
Formal and informal links between enterprises, including subcontracting relationships, facilitate economic specialisation of firms as well as superior access to
Knowledge created within an enterprise spills over for use by other enterprises 53. There is considerable evidence supporting the hypothesis that flexible production systems
actually outperform those based on mass production. One of the most striking examples of superior economic performance is provided by Emil Roaming,
than large enterprises. In these specialised industrial districts an agglomeration of producers within an industry work in close physical proximity.
The narrow division of labour common to large enterprises has been replaced by an organisational structure in which employees perform a wide variety of different tasks
with other enterprises afforded by geographic proximity, in order to better access new ideas and knowledge. This strategy may be especially important in young industries or industries where strategic
medium-sized enterprises increased over time, but so has their share of the total foreign direct investment
The first is that the enterprise must have an endowment of capabilities in foreign markets that are superior to those of firms located in other countries.
policies in order to broaden the population of small and medium size enterprises who can benefit from
organisations that perform development or engineering activities for larger enterprises. In most national technology programmes, technical consultants are permitted frequently not to participate as contractors, so
Muldur (1999) further explored the profile of these enterprises and found that 41%of these SMES were
and Enterprise Ireland have begun to do 3. Pure equity financing. Some countries go one step further in their strategy adjustment
companies,(Enterprise Ireland. Equity finance mechanism can complement classic public R&d grants and business development grants
DTI Enterprise Ireland (°1998 Yearly Budget 3, 75 billion 5de FP 1998-2002 156 million
and R&d support is that enterprises under-invest in R&d because they cannot fully capture the rents of their efforts.
Buckley, Peter J.,1997, â€oeinternational Technology Transfer by Small and Medium-Sized Enterprises, 9 (1
OECD, 1997, Best Practices for Small and Medium-Sized Enterprises, Paris: OECD OECD, 1997, Economic Survey of the United states, Paris:
Small and medium-sized enterprises (SMES) play a vital role in the economic development of nations.
SME Small and Medium-sized Enterprise SMES Small and Medium-sized Enterprises SPI Survival Progression Indicator
6 Parameters of the SIV Model Symbol Parameter ijsi Survival index oisi Operating conditions survival index
models of small and medium-size enterprises (SMES. Journal of International Entrepreneurship 2 (1†2), 155†177
analysis tool for small and medium-sized enterprises (SMES) performance models†utilization. Journal of International Entrepreneurship 3 (1), 53†70
model on an intensively innovation-oriented enterprise: The case of Autoadapt AB. Working paper, presented at the International Council for Small
Medium-sized Enterprises (SMES) †66 Paper 2: â€oeaspem as the New Topographic Analysis Tool for Small
and Medium-sized Enterprises (SMES) Performance Models Utilization†68 Paper 3: â€oeanalysis of Swedish Fishery Company Using SIV Model
Innovation-Oriented Enterprise: The Case of Autoadapt AB€ 81 5. Discussion and Analysis 83 Advantages and disadvantages of existing SME performance models 83
Small and medium-sized enterprises (SMES) 1 are crucial economic actors within the economies of nations (Stanworth and Gray 1993, NUTEK 2004, Wolff and Pett 2006
distinguishing the different categories of enterprises, firm age, and the average life span of firms in the business sector.
â€oeamana, †which was meant to be a commercial broking enterprise. The company, which I started in 1993,
solvency) of the enterprise life cycle (Storey et al. 1987, Keasey and Watson 1986a, b, 1987 and 1988.
enterprise size, as well as the enterprise growth rate, is inversely related to the probability that the firm will close (Mcpherson 1995.
SMES usually fail within the first years of their lives Altman 1983, Castrogiovanni 1996, Monk 2000.
which technology-based enterprises progress in their development. His focus was on the earlier stages of their lives.
as often these enterprises have not reached a stable status and tend to be more dynamic than more mature firms
enterprises have reached often not yet a stable status, and they tend to be more dynamic than
with the kind of enterprise structure generated in company build up. In general, Information and Communication Technologies (ICTS) drive organizations to adapt an open structure
system model, where enterprises commercialize their internal and external ideas, and their technologies and use, to improve both their external and internal capacities.
Intellectual capital relates to the intangible assets of an enterprise (Sveiby 1997, Sveiby and Risling 1986, Edvinsson and Malone 1997, Roos et al. 1997.
organizational contexts, including established larger organizations, small enterprises, and 48 entrepreneurial start-ups. Secondly, networks are complex
as enterprises may reduce their size in the short -term to boost profitability for a subsequent market expansion (Paasio et al. 1994
distinguishing the different categories of enterprises (for the firm size parameter) and the average life span of the business sector (for the age of enterprise.
The reason for this is that firm efficiency is isolated not from the firm†s external environment.
At this stage, the enterprise has the potential to grow or it may stay at the
China, small manufacturing enterprises have launched the country into its new economic era Without SMES, China could not have developed the export-based economic model that
possibilities between enterprises. Furthermore, I evaluated the way the parameters were selected for the intended model based both on the literature review and the theory-driven
development of the enterprise for years Although other models such Z-Score and ZETA have their disadvantages,
Enterprises (SMES) †This paper was published in the Journal of International Entrepreneurship 2 (1†2), 155†177
environment, investigating a population of firms rather than a single enterprise. Reviewing these models and discussing their individual strengths
while Multinational enterprises (MNES) have a higher degree of operational complexity and need stronger performance predictors.
Enterprises (SMES) Performance Models Utilization†This paper was published in the Journal of International Entrepreneurship 3 (1), 53†70
relation to information availability about the studied enterprises. Such a strategy, to the best of my knowledge, did not yet exist in the literature;
performance of a single company relates to the general population of enterprises in a certain
In this last case, the focus is on the internal environment of the enterprise Contribution of paper 2 to the purpose of the thesis
enterprise is based a family business in the traditional fishing industry in Sweden. The enterprise was started in 2001†thus a young company then.
The tested firm worked with fish filets within a business sector defined as the â€oefish preparation industry. †The enterprise had
poor performance throughout its short life, and so the owners asked me to investigate the performance.
enterprise. During the SIV analysis of the Swedish firm, new concepts were introduced to increase the practicality and analytical capacity of the model
from all other enterprises 80 Neglecting the networking nature of modern economy is a major weakness in
Enterprise: The Case of Autoadapt AB€ This working paper is presented at the International Council for Small Business
environment of an enterprise. However, with the exception of the SIV model, these models rely heavily on business ratios,
reports for smaller enterprises Classical firm performance models were built in a period of limited exposure for
describe a single firm in isolation from other enterprises To remedy the deficiencies of the existing SME performance models
environment of the enterprise The policy discussion in paper 6 provided a good of example of how policy
distinguishing the different categories of enterprise, firm age, and the average life span of firms in that business sector.
Innovation in SMES differs from that in larger enterprises (Rothwell 1991 Rothwell and Dodgson 1994, Vossen 1998, Hadjimanolis 2000.
complexity of innovation processes in such enterprises At the external environment level, the input indicators that are candidates for
internal environment of the enterprise. They also require different levels of information input The ASPEM diagram places each of the models in relation to two dimensions.
their strategies and policies on the growth of small and medium sized enterprises. Attaining such capacity is of particular importance to the innovation activities of SMES, as policy
enterprise, is a new approach to grasp the relationship between firm innovativeness and performance Further research is needed to build SME performance models focused on the
Performance factors of small and medium-size enterprises: A new classification system. In Irene Johansson (ed.),the Uddevalla Symposium 2002
Small and medium-size enterprises performance: An evaluation using the survival index value (SIV) model.
International Conference on Medium Enterprise Development, Collingwood College University of Durham, Durham, U k.,14†16,july 2002, paper no. 15 (CD version
Conclusion in small and medium-sized enterprises. In Z. J Acs and B. Yeung (eds.
Entrepreneurs and their enterprises. In K. H. Vesper (ed.)Frontiers of Entrepreneurship Research, Proceedings of the second Babson Entrepreneurship
German small and medium-sized enterprises. Int. J. Business Environment 3 (2), 139†158 Donaldson, L. 2001.
and medium-sized enterprises: A multilevel conceptual model. Journal of Small Business Management 47 (3), 308†330
and medium-sized enterprises: Some Australian evidence. Journal of Small Business Management 40 (1), 27†42
French small and medium-sized enterprises. Journal of Small Business Management 37 (2), 106†114
Responsible for Small and Medium Sized Enterprises (SME), 3†5 june, Istanbul Ohlson, J. A. 1980. Financial ratios and the probabilistic prediction of bankruptcy.
Profitability of small and medium-sized enterprises in high-tech industries: The case for biotechnology industry.
for small enterprises. Journal of Developmental Entrepreneurship 14 (1), 89†101 Rastogi, P. N. 2000.
Sustaining enterprise competitiveness†is human capital the answer Human Systems Management 19 (3), 193†203
manufacturing enterprises. International Journal of Innovation Management 12 (2 113†137 Smith, K. G.,Mithell, T. R. and Summer, C. E. 1985.
these two places (SMES and large enterprises) do succeed not necessarily one another in time but can,
cases large enterprises which dominate the innovation process. Moreover, these two innovation regimes can be explained by the phase a given industry is going through (Dosi
enterprises. On the contrary, during the maturity phase--for example, the steel and automobile sectors where markets are saturated quite and generally oligopolistic
new enterprises, including small ones, where new usages and types of the product are developed.
large enterprises, SMES, institutions of higher learning (universities, research institutes local authorities (municipalities, local organizations) and government institutions
Medium-sized Enterprises (SMES) in Europe in terms of research participation. He has an MSC in Engineering from the University of Porto (1989) and a Master†s in Marketing by IEP/ESADE (1999
The innovation capacity of Small and Medium Enterprises (SMES) is a key issue for Europe†s
innovation capacity of Small and Medium-sized Enterprises (SMES. In terms of regional policy, the SME concept is taken generally to mean everything from micro-companies
Competitiveness of Enterprises and SMES (COSME) and the European Regional Development Fund ERDF) offer both direct and indirect funding,
With Small and Medium-sized Enterprises (SMES) as its main target, the Competitiveness and Innovation Framework Programme (CIP) supported innovation activities (including eco-innovation
•The Enterprise Europe Network (EEN), which offered a'one-stop shop'to meet all the
Small and Medium Enterprises, i e. the internal ability of companies to manage innovation processes from the generation of the idea to its profitability on the market
as COSME15 (Competitiveness of Small and Medium Enterprises) will also be set up COSME will run alongside H2020 with a budget of â 2. 4 billion.
It is designed principally to strengthen the role and innovation services of the Enterprise Europe Network-EEN under this programme
http://ec. europa. eu/enterprise/initiatives/cosme/index en. htm Market Lump sum 50.000 â 6 months
enterprises in the partner regions, by using structural funds to capitalise on the results from previous projects, addressing key
companies (a large majority of which were innovative micro and small enterprises) and 430 innovation intermediaries found that
o Lack of access to finance is viewed by enterprises as the main factor hampering innovation activities
Community level, http://ec. europa. eu/enterprise/policies/innovation/files/swd effectiveness en. pdf SMART +INNOHUBS INNOMOT
enterprises (notably SMES) and external knowledge/research providers (universities, R&d service providers or private consultants), in a small-scale approach targeted to the needs of individual
Subsidy) or specific types of SMES (Young Innovative Enterprises Contract •MINI-EUROPE28 o Technological Environment Innovation Subsidy
o Young innovative Enterprises Contract, with grants and public loans •ERIK ACTION30 27 INNOSUP-4-2014 within the †Innovation in small and medium-sized enterprises†Work Programme
innovation vouchers help micro enterprises to start an innovation process by building up a first
micro and small-sized enterprises to undertake innovative initiatives and increase supply and demand in the field of innovation services.
•Young Innovative Enterprise (YIE) Contract (Champagne-ardenne, France) in the PERIA project: The GP was developed by the Champagne-ardenne Regional Council and
Large enterprises provide an innovation mentoring service to smaller ones. This is achieved through the organisation of training sessions on the level of day-to-day
Virtual Enterprises and Organisation Finally, one GP from ERIK ACTION42 was particularly innovative in its response to this barrier:
PRAI/VINCI GP aimed to promote Virtual Enterprises and Virtual Organisation as an instrument for
the creation and managements of clusters leading enterprises to share skills and competencies more easily.
A unique GP about virtual enterprises •PRAI/VINCI (Tuscany, Italy) in the ERIK ACTION project:
Virtual Enterprise/Virtual Organisation as an instrument for the creation and management of clusters, thus strengthening the competitiveness of the main industrial systems in the Tuscan
A Virtual Enterprise (VE) is a temporary alliance of enterprises that come together to share skills or core competencies
Universities and enterprises network to increase technology transfer •MINI-EUROPE47 o Genomnanotech: Setting up of a technology transfer office and innovation
Enterprise Contract Public loans for young innovative enterprises and public grants for consulting services (§3. 2. 1
High Private/Public Loans ERIK-ACTION FAME Bank loans for innovation projects ensured by guarantees from
ICT ERIK-ACTION PRAI/VINCI Support for the setting up of Virtual Enterprises based on ICT
H2020 call in the Innovation in small and medium-sized enterprises work programme: INNOSUP-5-2014
H2020 call in the Innovation in small and medium-sized enterprises work programme: INNOSUP-4-2014
•Support given to enterprise creation very often appears at city level when dealing with
•COSME is launched a programme by DG Enterprise with a budget of â 2. 4billion.
•The cluster policy launched by DG Enterprise with support for meta-clusters (13 have been
networking in order to create virtual enterprises/organisations Altogether, these Good Practices cover the most important skills necessary to foster and manage
Enterprise Development to conduct a project on new forms of public procurement including a series of training courses for procurers and SMES co-financed by the Structural Funds
•Enterprise Ireland channels technical advice and market information to contracting authorities helping them to identify types of product or service from the SME community
the uptake of eco-innovation in enterprises within the construction and mobility sectors and the
enterprises to increase the development or uptake of eco-innovation products and services. It proposed
8 Belgium Flemish Government-Enterprise Flanders, Brussels 9 Romania The Southeast Regional Development Agency, Braila
the PRAI/VINCI is given particularly relevant its focus on Virtual Enterprises which stands-out from the
VINCI aimed to promote the Virtual Enterprise/Virtual Organisation as an instrument for the creation and management of clusters,
A Virtual Enterprise (VE) is a temporary alliance of enterprises that come together to share skills or core
4 Ireland Meath County Enterprise Board, Navan 5 Bulgaria Regional Agency for Entrepreneurship and Innovations â€
Enterprise contract (loans New products by design (new staff Incubation coaching 82 good potential for transfer, due to their simplicity of implementation and universal applicability.
Aquitaine) to the Veneto Region and Young Innovative Enterprise Contract from the Champagne -Ardenne Regional Council was transferred to Valencia via the creation of a new funding instrument
Young Innovative Enterprise (YIE) Contract (Champagne-ardenne, France: The Good Practice was developed by the Champagne-ardenne Regional Council and addresses the shortage of financial
enterprises to start an innovation process by building up a first technological partnership with a service
•Support for development of innovative enterprise •Support for development of clusters •Support for development of cooperation between the research and SME sectors
medium-sized enterprise. Link •Community Framework for State Aid for Research and development and Innovation. Official
Call in the Innovation in Small and Medium-sized Enterprises work programme 2014. Link •INNOSUP-5†2014:
Medium-sized Enterprises work programme. 2014. Link •Innovation and business strategy: why Canada falls short.
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