Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

By Ș. Gherghina, Mihai Alexandru Botezatu, Alexandra Hosszu, L. Simionescu. Sustainability, 2020

459 citations recorded by the source corpus.

Small and medium-sized enterprises (SMEs) are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation and economic growth, but they encounter many funding barriers. The purpose of the current paper is to investigate the impact of investments and innovation on territorial economic growth, as measured by turnover, for Romanian active enterprises, especially SMEs, over the period 2009–2017. By estimating several log–log linear regressions, the quantitative outcomes provide support for a positive influence of investments on turnover. The association was confirmed both for all active enterprises at the national level, as well as for micro, small, middle-sized and big companies. As regards expenditures on innovation, a positive impact on turnover was acknowledged for all enterprises and particularly for big companies, but there was an absence of any statistically significant relation in the case of SMEs. The impact of firm size on turnover was positive for all active enterprises at the national level, along with active micro-units. Also, the estimation results show a positive impact of the number of active micro-units on territorial economic growth. The empirical findings are relevant to managers and policymakers in order to stimulate, encourage and offer support to SMEs’ development through their strategies.

Subfields: Economics and Econometrics, Management of Technology and Innovation, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fe3149eac52b717b2f68ca7463b5a4e136526e26

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Citations in the corpus

• Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia (2021, background): “They are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation, and economic growth, but they encounter many funding barriers [6,7].”
• Economic Growth, Increasing Productivity of SMEs, and Open Innovation (2021, background): “SMEs are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation, and economic growth [48,49].”