Small businesses are promoting innovation!! Do we know this?

ABSTRACTThis study shows that prior studies and surveys have failed to capture the actual levels of innovation in small businesses and demonstrate that a high percentage of them promote innovation, although they may not define it as such. The study is based on interviews with 202 small business managers in the industry sectors in Israel. The findings show that over 95% of small businesses are engaged in at least one type of innovation. The conclusions of previous studies have not provided appropriate solutions for these businesses, apparently due to a lack of appropriate information and because many small businesses do not consider certain business activities innovative despite their meeting the accepted definitions. Accurate information regarding the scope of innovation and understanding of small business managers’ lack of awareness have theoretical as well as practical implications for policy makers for adapting programmes to promote innovation considering the characteristics of these businesses.