Abstract
Small and Medium Enterprises (SMEs) are critical components for any country. It demands systematic examination based on theory and proves its significance. In our case, finding explanations is required why SMEs are important, about its historical background and what it would deliver in the times to come. As the issue of SMEs is yet to recognize by the respective governments over time, it is inevitable to identify and find way out to address the concerns of the sector. The main objective of the paper is to make an inquiry into the increasing importance of SMEs in Nepal. While analyzing Nepal's SMEs, European SMEs are taken into consideration including other countries in an innovation perspective and technology transfer. Based on the empirical evidence and innovation theory of management propounded by the world-renowned scientists, we have tried to find solutions scientifically related to the weak absorptive capacity of SMEs to go in an innovative way for their advancement and technology transfer in Nepal SME as the role of SMEs is deemed critical for job creation and economic growth. The lessons from European and other developed economies could transform SMEs into more productive ones through innovation and push for the sustenance in the long run. The research shows that defining the SMEs in the Act itself is not sufficient to promote the sector. Rather, the SMEs should be advanced through the adoption of innovation management techniques and technology transfer with facilitation from acknowledgment management and partnership approach to their sustainability. Conclusion: the country needs to adopt a strategy to define the SMEs in a professional manner like other countries; introduction of some rules and regulations to encourage the sector in terms of incentives and finance; introduction of SME Policy to consolidate SMEs, which also needs to focus on technology transfer and knowledge management for adopting innovative approach for the advancement of the sector.
Highlights
Small and Medium Enterprises (SMEs) are the backbone of most economies – whether it is in Nepal or European countries
small and medium en terprises (SMEs) role is significant, and consumers need to feel the difference on the use of SMEs products, which can only be achieved through innovation
The innovation concept covers the following five cases: "(1) The introduction of a new good – that is one which consumers are not yet familiar – or of a new quality of a good. ( 2) The introduction of a new method of production, that is one not yet tested by experience in the branch of manufacture concerned, which need by no means be founded upon a discovery scientifically new, and can exist in a new way of handling a com modity commercially
Summary
Small and Medium Enterprises (SMEs) are the backbone of most economies – whether it is in Nepal or European countries. There exists differences in SME definition based on international institutions, national laws or industries. Small enterprises (besides micro and cottage) that has US$ 0.9 million fixed capital, medium enterprises starting from the US $ 0.9 million to the US $ 2 million in a country like Ne pal [13]. This main aim of the article is to examine SME and its future potentials in the perspectives ofinnovation 148
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call