The Innovative Basis of the Growing Small and Medium-sized Businesses

Abstract

The growth of the organisation, expressed in revenue and the number of staff increase, has a positive effect on the socioeconomic indicators of the country. The firm's innovative activity as a factor of intensive growth in current conditions is beyond doubt but requires additional analysis to ensure it, considering the problems of growing organisations. Identification of innovation-based success factors and solutions to the problems of growing companies are topical management issues. The study aims to determine the factors of innovative development that would be the basis for ensuring the growth of small and medium-sized organisations. By methods of selective observation and in-depth structured interviews with representatives of small and medium-sized businesses, approx. three hundred organisations from Russian regions were surveyed, growth factors based on innovations were determined. The study results allow us to see the problems of growth of firms and choose possible solutions in the field of innovation management when making investment decisions. This will smooth out the economic instability of the business during the period of growth and create sustainable competitive advantages.