Abstract
There’s nothing wrong with staying small. You can do big things with small team. It is impossible to overstate the significance of the role that small and medium-sized businesses play in emerging countries. Due to fact that small and medium firms account for 40% of the country's GDP, Pakistan is nation that is making progress in the area of small and medium enterprises. Even at a low level, innovation in manufacturing firms has the potential to bring about improvements in performance of enterprises. A number of factors, include financial resources, human capital, strategic leadership, regulatory environment, risk tolerance, consumer feedback & technological adoption, all play a part in determining the function that the innovation plays in this context. The strategies of random sampling that were utilized in order to acquire data from the managers and businesses of manufacturing concerns in Lahore, Pakistan. The study offered significant information and thus, by keeping a close check on innovation diffusion theory, this study will advise and assist the organization in paying attention towards the innovation. It will also help policymakers to better understand applicability of required innovation.
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