The Dynamics of Cognition Process of Micro, Small, and Medium Enterprises (MSMEs)

Recent economic slowdown and subsequent bounce back has translated into different learnings for organizations. This article attempts to understand the various factors at work that have defined the cognition process of small and micro level enterprises and their readiness to adapt to new situation(s). A comprehensive review of literature has helped identify certain factors that were inculcated into a questionnaire administered on 50 micro and small Indian business enterprises from where the final variables have been identified. The key conclusions show a mix of factors, five in number, which have been grouped under the broad headings of external and internal variables. The flexibility to acquire new knowledge appears to be key for sustainability, among the factors and variables studied. Another aspect is the size of an organization has little role to play in cognition process, and its flexibility to adapt to new situations for survival and growth.