A Theoretical Framework to Analyze The Aspects of Internal and External Environment in Innovation Adaptation in Micro, Small and Medium Enterprises (MSMEs)

Abstract

Micro, Small, and Medium Enterprises (MSMEs) have been regarded as the driving force behind economic development worldwide. They also provide resources, critical components, and backward linkages to large-scale industries, serving them as an auxiliary. MSMEs are typically labor-intensive, creating job opportunities for an ever-increasing population of India. They are also suitable for Indian farmers who require seasonal employment. The sector’s goal is to help people break down the cycle of poverty, unemployment, and injustice, instead of using the welfare method. The MSMEs’ performance has caused the majority of the current economic growth (Gupta & Barua, 2016; Vrgovic et al.., 2012). In developing nations such as India, there are many roadblocks for large organizations to join any industry. Roadblocks can relate to limited resources, labor issues, etc. Small businesses have a golden opportunity in those economies to become productive and achieve overall industrial growth (Vrgovic et al.., 2012; Biswas et al.., 2007).