A study of barriers to and motives for innovation in the selected Iranian small enterprises

The importance of SMEs in economic growth has made them a central element in recent policies. The business environment is becoming increasingly dynamic and competitive; this change is the reason why many firms are seeking new ways to innovation. This situation has made the innovation studies in SMEs highly important. This paper aims to identify innovative activities, barriers to innovation and innovation motives at selected SMEs that had participated in the Tehran 2005- Industrial Exhibition. The findings of this paper show that consumer needs and product competitions are the most important motives for target firms. Financial constraint has also been highlighted as the main barrier to innovation in the selected firms. The results also show that the impact of firm size does not have any significant difference in the level of innovative activities between the two groups of firms.