Abstract
There are several ways to improve productivity and overall performance at the firm level. Measurement of productivity is actually one way of increasing the level of productivity. Along with methods of productivity improvement there are also several factors that render them ineffective or even prevent improvement actions. These factors can be called obstacles to productivity improvement, and they can be classified into three categories: internal, external and general obstacles. It is not possible to eliminate all the obstacles inhibiting productivity in one single study. The aim of this study is to ascertain which are the most significant obstacles to productivity improvement in small and medium sized enterprises in Finland. The results show that the most significant obstacles restraining productivity improvement belong to the group of internal obstacles. The message is clear - it is up to the firms themselves to find ways to improve their productivity.
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