Entrepreneurial Perception about the Factors Affecting Innovation in the Bangladeshi Small and Medium Enterprises: A Study on the Jute Diversified Products Industry.

Abstract

In today’s world, innovation is inevitable for the growth and survival of businesses, especially for the Small and Medium Enterprises (SMEs). This study steered to identify the factors which affect innovation of the SMEs. Here, Jute Diversified Products (JDP) industry is selected as a study area as this has emerged from the most traditional SME sector of Bangladesh. Five cases are introduced here to analyze the perceptions of the entrepreneurs regarding the motivating/ de-motivating factors in relation to innovation. The findings of the study suggest that knowledge factors, institutional factors, cost factors, market factors, legal factors, political factors, and social factors have negative impacts on innovation while some forms of administrative factors act differently in the context of Bangladeshi SMEs.