Importance of Innovation in Small Scale Business in India: An Empirical Study

Abstract

Small-scale firms in India place a great deal of importance on innovation since it helps them expand and succeed overall. Innovation helps these companies stand out, adjust to changing client expectations, and outperform their competitors in a competitive market environment. Innovation enables small firms to create distinctive goods or services that differentiate them from rivals, in the first place. They can draw clients' attention and get a competitive edge in the market by introducing unique and distinctive offerings. The efficiency and productivity of small firms are also greatly improved by innovation. These businesses can restructure their operations, cut costs, and maximize resource utilization by incorporating cutting-edge technologies and procedures. Additionally, innovation makes it easier to look into new industries and business models, giving small firms the chance to grow their clientele and look into untapped potential. It inspires business owners to use their imagination, take prudent chances, and modify their plans in response to shifting market circumstances. Small-scale firms in India rely on innovation as a key driver because it gives them the tools they need to compete successfully, offer distinctive value propositions, and support long-term growth. Sample of 212 people from different business sectors were considered to conduct the study survey and know the importance of innovation in small scale business in India and found that innovation enables small firms to create distinctive goods or services that distinguish them from others and help them to outdo their competitors in a competitive market environment.