Title: Business development in growth-oriented microenterprises: enhancing innovation capability

Authors: Anneli Bäck; Kyllikki Taipale-Erävala

Addresses: Department of Management, Estonian Business School, A. Lauteri 3, 10114 Tallinn, Estonia ' UEF Business School, University of Eastern Finland, Yliopistonkatu 2, 80100 Joensuu, Finland

Abstract: This article focuses on the capability and business development of growth-oriented microenterprises. Despite their potential impact on economic growth, microenterprises and especially the growth-oriented ones are under researched. The descriptive research approach is supported by empirical interview data from 25 enterprises in southern Finland in a multi-case study. The study presents the varied ways for gaining competitive advantage, responding to customer needs as well as beneficial support actions. As a result, we define three innovation capability (IC) categories connecting business development and support needs. The findings benefit microenterprises by stressing the intertwined nature of business development, IC, and support needs. The study implies that both the entrepreneurs and regional actors need to understand the crucial role and systematic development of IC through entrepreneurial learning. In addition, regional actors may find more nuanced and effective ways to enhance business development by considering these developmental categories of growth-oriented microenterprises.

Keywords: business development; entrepreneurial learning; innovation capability; IC; microenterprises; owner-manager.

DOI: 10.1504/IJMED.2023.130149

International Journal of Management and Enterprise Development, 2023 Vol.22 No.2, pp.171 - 194

Received: 22 Jun 2022
Accepted: 08 Nov 2022
Published online: 05 Apr 2023 *

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