Innovation for Survival: Entrepreneurial Response of Indian MSMEs to Demonetization

Abstract

The aim of this paper is to explore entrepreneurial response of micro, small and medium enterprises (MSMEs) in India with respect to demonetization. MSMEs act as crucial originator of entrepreneurship and innovation because they provide employment to large number of people and also contribute to growth of an economy. In the ever changing business environment, SMEs have to respond frequently in an innovative way. These frequent changes in the business environment forces enterprises to think out of box and reinvent themselves. In the recent times, there have been changes in use of technology and demonetization in India. This has attracted progressive response from the small and medium enterprises. But it has also resulted in failure of many enterprises. This study presents entrepreneurial response to changes in technology and demonetization. Some MSMEs have adopted innovative techniques to tackle challenges of demonization. The result shows that increase in registrations of MSMEs. They have adopted process innovations to tackle demonetization. There is more use of technology to cut overall cost. The use of technology is more in the payment methods, designing and other operational activities etc.