Analysis Of Small And Medium Sized Firms

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Analysis of small and medium sized firms
(Small and medium scale enterprises: SMES)
By Daniel Abioye,

Small and medium sized firms play a prominent role in economic development (Osotimehi, et al. 2012). Hence it has been the underlining background to this study. The importance of SMES cannot be overemphasized in an economy. This is because they contribute to the creation of employment, free competitive market environments, inputs for large scale industries and so on. Drucker (1985) stated that entrepreneurship is not complete without the injection of innovation. In any business venture, the combination of innovation and entrepreneurship by an SME will need a very important spice of creativity to ensure a quick growth and development process in its environment. It is pertinent to understand that ‘creativity and Innovation’ are the engine house of economic growth. Creativity focuses on introducing a new idea/product/service Wyckoff (1991) and on the other hand innovation assist to turn the idea/product/service into a business that records success Heunks and Roos (1992). Entrepreneurship is simply about breaking new boundaries, introducing that which is entirely new or a modification of the existing ones. Entrepreneurs are commonly known as risk takers because of their ability to break frontiers without agitation or fear of loss.
The failure and problems of large scale enterprises in achieving the desired
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