The Characteristics of SMEs in Dubai and Their Impact on Innovation

The Characteristics of SMEs in Dubai and Their Impact on Innovation

Mercy Veronica Chaita (Higher Colleges of Technology, UAE)
DOI: 10.4018/978-1-5225-9377-5.ch007

Abstract

This chapter explores the extent and characteristics of small and medium enterprises (SMEs) in Dubai and their innovative practices. Within this context, considerable emphasis is placed on evaluating the propensity of these SMEs to adopt new technology. SMEs are significant to the local entrepreneurship and innovation activities as well as improving competitiveness. Furthermore, these enterprises play a crucial role in job creation and are fundamental to economic growth. The connection between economic success in SMEs is fundamental since these firms are able to incorporate innovation into their operations and organizational practices.
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Part I: Breadth Of The Definition Of Smes And Innovation

Defining an SME

There is lack of homogeneity within the SME definition, beyond that of being different to large organisations. Furthermore, size classifications within SMEs are not the sole differentiating factor, but they represent a key factor and initial starting point for studying SMEs, ILO (2017). What constitutes an SME depends on country, the enterprise, number of employees, annual sales, assets, or any combination of these. For instance, in Canada the term SME refers to businesses with fewer than 500 employees, while in the EU, a business employing less than 250 is classified as medium-sized; a business with less than 50 employees is classified as small, while a business with less than 10 employees is considered a micro-business, (EU/OECD, 2016).

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