Innovation Policy for Sustainable Development of SMEs in Benin

Abstract

Developing countries in general, and Benin, in particular, depend seriously on the private sector for economic growth. Moreover, SMEs control their private sector. Therefore, it is emerging to think of new policies that can help sustain the growth of SMEs in developing countries for a better economy. Thus, innovation, being paramount irrespective of any enterprise size, appears to be the cornerstone to achieve economic growth with SMEs. This paper, with Benin as a sample size, aims to provide guidelines for state government to design sustainable development policies for SMEs, providing three main contributions. First, this work proposes a new formula together with a conceptual model for an attempt to well define SMEs. Second, this study investigates the challenges of Benin SMEs across the factors; Funding, Politics, Firm Management, and innovation capabilities. Finally, guidelines for innovation policies are proposed to sustain SMEs growth. To improve its economy, Benin should design and implement excellent and realistic innovation policies to sustain SMEs growth.