Small and medium enterprise (SMEs) adds a critical contribution concerning progression in economies in terms of employment and growth irrespective of economies standing and positioning. Trade and industrial resumption afterwards the East Asian crunch of 90s and 2009 international monetary crises influence the economies to establish a sturdier base for local industries especially SMEs. The trade and business sector globally are facing modifications which instigating from modern description of innovation and entrepreneurialism. Which reviving the excellence of production and services, technological advancement, and workplace innovation. Which is imposing pressure on businesses and strategic makers for refurbishment of approaches and stratagems aligned with the domestic business development models. Consequently, inferred a latest prototype for SMEs to enforce businesses to be more dynamic, effectual and up to date. Similarly, SMEs in Pakistan are functioning under constant constraints due to lacking in advancement and evolution in operational, administrative and procedural dominions. Therefore, these forces the need for innovation to deal with challenges effectively and to ensure its existence competitively both in a local and international markets. The purpose of this study was to add significantly in the literature of ‘workplace innovation’ and proposing the model of workplace innovation especially in context of SMEs.

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