Innovation is the process of translating or making an idea into effective goods or services. The more unique the idea is, the better it can bring out to the consumers in terms of a product or a service.

Small and medium enterprises (SMEs) need to implement policies that encourage innovation. Many organisations are adopting measures to strengthen their ability to innovate. As competitors are getting faster, smarter and hitting the market, it is important for each company to have a unique idea and workforce in order to boost themselves out in the market.

The economy is growing each day with many small and large businesses coming in. It makes it strenuous for companies, especially small and medium enterprises, to compete in the global world.

Innovation is helping in the growth of the economy. The competition level rises when business groups are competing with each other. “How an economy is competitive is determined by its capability to innovate, its capacity to innovate, its ability to support innovation,” said Kris Gopalakrishnan, Co-founder, Infosys, in an interaction with ET Now on July.

“Why Bangalore is much higher than the country, it is because of the innovation ecosystem that exists in Bangalore and that clearly says that the new wealth of nations is driven by the innovation capacity, innovation capability, the number of innovations that are happening in their economy,” he added.

SMEs see the importance of innovation in entrepreneurship as it contributes to the success of the company. Small businesses are important as they are directly involved in the community and therefore, contribute to their financial and economic gain and know the needs of the people. Innovators have knowledge as to when and how to attract the consumers and base on what.

Small businesses require innovators to create and bringing in solutions to the problems they are facing and also bringing in new products and services to the market from the ones that are already existing.  The benefits of an innovative business, right through from start-up, growth and development can far outweigh any benefits gained from simply sharing or making use of the existing ideas or models.