Innovation is widely recognized as a key factor in the competitiveness of nations and firms. Small firms that do not embrace innovation within their core business strategy run the risk of becoming uncompetitive because of obsolete products and processes. Innovative firms are a perquisite for a dynamic and competitive economy.This paper reports on the results of a study that examined barriers to firm innovation among a sample of 294 managers of small and medium-sized enterprises (SMEs) in Spain. The study examined the relation between (1) product, process, and management innovation and (2) 15 obstacles to innovation, which can limit a firm's ability to remain competitive and profitable. Findings of the study show that barriers have a differential impact on the various types of innovation; product, process, and management innovation are affected differently by the different barriers. The most significant barriers are associated with costs, whereas the least significant are associated with manager/employee resistance. Additionally, the results demonstrate that the costs associated with innovation have proportionately greater impact on small than on larger firms.The findings can be used in the development of public policy aimed at supporting and encouraging the innovation among SMEs in Spain. Government policies that encourage and support innovation among all firms, especially small firms, can help countries remain competitive in a global market. Public policy that encourages innovation can enable firms to remain competitive and survive, both of which have

From the results of a survey we compare the demographics and potential problem situations of 57 bankrupt firms to 55 nonbankrupt firms in an attempt to identify root causes of bankruptcy. Results indicate that the most serious problems of bankrupt firms can be condensed into three categories: lack of knowledge, inaccessibility to debt, and economic climate. Bankrupt firms also appear to be older, more likely to be in the retail industry, and organized as proprietorship or partnership than nonbankrupt firms. They are also less likely to use the Internet in their business operations than the nonbankrupt firms. One surprising finding is that while both subsamples found knowledge important, the nonbankrupt sample found it significantly more important than the bankrupt firms. This evidence provides insights for governments and academic institutions in their efforts to provide resources that may help reduce the incidence of bankruptcy, especially during times of declining economic health.

This study examines the impact of role model activities on potential entrepreneur's desire to own a business. A group of students, whose role model owned a business, were asked to rank the influence on career intentions of twenty specific activities in which role models and potential entrepreneurs might engage. The study looks at the relationship between these activities and the desire to own a business. Role model activities related to involving the respondent in professional activities, employment in the business, and discussions about the business were found to be significantly related with interest in starting a business. The results can be useful to those involved in teaching entrepreneurship courses, owners of businesses who are interested in encouraging entrepreneurship, and providers of assistance who council owners of firms.

This article views the survival of a family business as partially dependent on spousal commitment. The decision to launch a business should depend not only on analysis of the opportunity, but also on the degree to which one's spouse shares a common vision about the goals, risks, and rewards of the business. Models and testable hypotheses are developed to guide empirical research on the antecedents and consequences of spousal commitment to a family business. The models can benefit individuals considering the launch of a business, couples that currently own a business, business consultants, and university instructors teaching entrepreneurship courses.

Most research and popular writing includes entrepreneurial role models as an important factor in the decision to start a business. Few, if any, studies compare the influence of business owner role models between two different countries. Further, studies cite the importance of role models for potential entrepreneurs but ignore how the role model process actually works. This study looks at activities that role models might engage in and compares their influence on respondents in the US and Mexico. This is the first study that examines differences in role model influence between two countries. Ten of the variables are significantly different between respondents in the two countries. Nine of the differences were rated as being significantly more influential among Mexican students than US students while only one variable was rated as being significantly less influential. Results of the study, especially as related to the specific influence of role models on career intentions, may be relevant in designing entrepreneurship programs. The results may also be appropriate in courses that discuss entrepreneurship in different countries (e.g., international entrepreneurship). The results may also be relevant in family businesses where eventual continuity of family ownership through succession is desired.

In this paper we present the results of a regional survey of small business entrepreneurs that asked about the use of and motivation for bootstrap financing -employing resources other than traditional financing to fund operations. Extending the work of Winborg and Landstrom (2000) our results indicate that perceived risk is highly associated with owners' assessment of the importance of bootstrap financing techniques. We also find that owners who see themselves as having limited ability are more likely to use private owner financing techniques that tend to squeeze all available funds from the owner and those close to him/her. Alternatively, bootstrap financing techniques involving the delay of payments are preferred when risk levels appear highest, while owners in business environments with the most opportunity are more likely to try to minimize accounts receivable. The results of this research can be used by consultants and agencies that assist small firms by acquainting owners with the myriad techniques for funding their companies as well as understanding the factors that often motivate the use of particular techniques. Owners should recognize that they should explore various funding alternatives rather than simply using what they are familiar with or what is readily available.

Innovation facilitates how SMEs respond to market changes and maintain their competitive advantage. This paper analyses the relationship between the degree of innovation (measured as innovation in products, processes and administration systems) and performance among 1,091 Spanish manufacturing SMEs. The results show that innovation positively impacts SMEs performance in low and high technology industries. Innovation was more important to achieving a competitive advantage to high technology firms than low technology firms. These results support innovation as being important to a firm's sustainable competitive advantage.

This study compares owners' assessment of the importance of 28 bootstrap financing methods between a sample of 44 technology-based and 44 nontechnology-based firms. The results indicated that owners' of technology-based firms believed that 6 of the 28 bootstrap financing methods were more important as compared to owners'methods of nontechnology-based firms. The bootstrap financing methods also were grouped using Winborg and Landstrom (2001) factors. Owners of technology-based firms believed that bootstrap financing methods that improved cash inflows were more important and that bootstrap financing methods that slowed disbursements were less important compared to owners of nontechnology-based firms. The results can be used by owners of small firms, consultants and by support agencies that provide assistance with financial planning and capital acquisition. Understanding the use and availability of all sources of capital can help owners of small firms to develop comprehensive financial strategies. This information also could be incorporated into training programs for owners and managers of small firms.Dr. Van Auken is professor of management at Iowa State University.