A Critical Examination of Barriers to Innovation in Small and Medium Enterprises: A Case Analysis of Chikan Industry in Lucknow District

Abstract

Innovation and dynamism is the backbone of any of the economy either it is developed or developing. This study is to examine the innovative process of small and medium enterprise in chikan industry residing in Lucknow District. There are a lot of work done in the field of innovation in SMEs but a very few related to chikan industry of the Lucknow (Arya at. all, 2002). This paper aim is to analyze and present the current status of innovation in SMEs of chikan industry in Lucknow District. This study is focused to find the key barriers faced by SMEs in bringing and adopting innovative practices to flourish the market. This study is based on survey method by using structured questionnaire to collect the data. Secondary data is also used to through literature review to validate the findings and its linkages. The findings of the study suggest that the chikan industry is still in growing phase has a large chunk unorganized could be better managed to exploit the potential of the market. The barriers faced by the industry is related to public policy, financial and funding constraints, limited budgetary resources, shortage of skilled manpower, poor communication system, lack of research and development (R&D) facilities, weak linkage of logistic management, hurdles in value creation and lack of long term strategies are the problems majority faced by the industry