JN4110 FUNDAMENTALS OF BUSINESS FOR MEDIA ENTREPRENEURS

1. Innovation and SMEs in
Media
Nicola Wright

2. What is Innovation?
“change that creates a new dimension of performance.”
(Drucker, 2005)
“Innovation is defined as the commercialisation of all new
combinations based on the application of: New materials
and components; the introduction of new processes; the
opening of new markets; and the introduction of new
organisational forms.”
(Schumpeter, 1934)

3. What is an SME?
Small is STRONG!
SMEs = Small or Medium sized Enterprises
Small: Less than 50 employees and less than £6.5million
turnover.
Medium: Less than 250 employees and less than £25.9
million turnover.
SMEs account for over 99.9% of all European business.
(2008)
SMEs have a pivotal role in the European economy as they
are able to quickly respond to new ideas and the rapidly
changing market.

4. What is the importance of an SME for
modern day innovation?
“Innovation often starts with a tiny idea but it can turn into
something legendry.”
(Virgin Media Business, 2012)
Small firms are more likely to introduce new innovations as
they have less commitment to existing practices and
products than similar larger firms.
Small firms can be important to high-tech sectors as
creators of significant innovations due to the niche roles in
which they often perform.

5. Innovation and SMEs...what’s happening?
SMEs to benefit from TSB Fund: £6.5m to be shared among
180 firms to boost innovation:
“Many small companies have great ideas, but lack the funds to
enable them to carry out the important initial feasibility work
required to see if their ideas are workable.”
(Bott, 2012)
Innovation and Research Strategy for Growth:
This strategy is a result of the government’s want to make the
most of the strengths of the UK, for example;
universities, research institutes, small businesses.
Willetts stated that, “A new innovation landscape, combined
with continued investment and collaboration with business, will
ensure that the UK is a world leader in innovation.”
(Nathan, 2011)

6. SMEs...What’s the Innovation?
“A good deal of the innovation that happens in the UK
comes from SMEs and with innovation comes business
growth.”
(Gray, 2011)
“We recognise that by improving the incentives for
companies to innovate they will continue to create life-
changing products to drive future innovation and growth.”
(Cable, 2011)
Evidently, with SMEs making up 99.9% of European
businesses, helping to keep them going is seen as the key
to innovation.

7. Bibliography
• Al-Hakim, L. And Jin, C., 2010. Innovation in Business and Enterprise: Technologies
and Frameworks. Pennsylvania: Business Science Reference
• Enterprise Directorate: Small and Medium Enterprise Statistics for the UK and
Regions. Availbale at:
http://webarchive.nationalarchives.gov.uk/+/http://stats.bis.gov.uk/ed/sme/
[Accessed:21 March 2012]
• Nathan, S. 2011. UK innovation strategy means SMEs take centre stage. The
Engineer. Available at: http://www.theengineer.co.uk/news/news-analysis/uk-
innovation-strategy-means-smes-take-centre-stage/1011174.article#ixzz1nIcCo6uu
> [Accessed: 20 March 2012]
• Small and Medium Sized Enterprizes: Definitions. Available at:
http://www.lib.strath.ac.uk/busweb/guides/smedefine.htm [Accessed 22 March 2012]
• Unknown. 2010. SMEs to benefit from TSB Fund: £6.5m to be shared among 180
firms to boost innovation. Innovation News. Available at:
http://www.innovationuk.org/news/innovation-news/0270-smes-to-benefit-from-tsb-
fund.html [Accessed: 25th March 2012]
• Virgin Media Business. 2012. About Innovation Nation. The Guardian. Available at:
<http://www.guardian.co.uk/innovation-nation-awards/about-innovation-nation>
[Accessed: 20 March 2012]