Fostering and limiting factors of innovation in Micro and Small Enterprises

Abstract

Literature discusses innovation factors by admitting differences between large and small firms. With this background, this research aimed to investigate the fostering and limiting factors of innovation in Micro and Small Enterprises. We adopted a categorization used for large companies to analyze these firms’ reality. Research methodology had a qualitative approach and a descriptive nature, and was conducted through interviews with 20 entrepreneurs and a local innovation agent from SEBRAE (Brazilian Support Service for Micro and Small Enterprises), who acted as an innovation promoter for Micro and Small Enterprises in the city of Picos, in the Brazilian state of Piauí. Results showed that the main fostering factors were Management support and Planning of actions required for implementation. The main limiting factors were Absence of qualified personnel, Fear of innovation consequences, and Entrepreneurs and employees’ conformism. Unlike other studies, the results show that the factors that affect innovation in Micro and Small Enterprises do not differ significantly from those in larger companies.