Technology Adaptation and Survival of SMEs: A Longitudinal Study of Developing Countries

Economic growth requires participation from small businesses, which also act as an important tool for equitable development. The World Bank (2012a) calculated that around 200 million people are currently unemployed, while 600 million jobs need to be created by 2020, mainly in developing countries. A number of those jobs are expected to be generated by small and medium enterprises (SMEs), given their high labour intensity. SMEs thus have a key role to play in facilitating the development of the global economy. SMEs constantly provide a significant contribution to the economy through the creative process, encouraging the advancement of technology, organizational innovation, job creation, income generation, economic competitiveness, and other aspects of social development in general, along with industrial expansion, in particular.