Financial Innovation: The Trend-Changing Facet of SME Competitiveness


  • Nikita Mehta
  • Mamta Brahmbhatt


In recent times, the hype of research in firm competitiveness in SMEs is increasing. There exist infinite numbers of study which talks about how to improve SME competitiveness. But there is not any concrete model that explains how to implement the competitiveness theory into the practice.  Many Indian SMEs are unorganized for many years, though they perform exceptionally well without any strategy implementation or applying some business models. This article aims to find the actual factor which affects SME competitiveness, it’s neither a model nor a theory, but it’s a framework that can guide SME managers to focus on a particular facet of firm performance. After having in-depth discussions and surveys with SME owners/managers, this article proposes the role of certain elements of a business activity, which makes their SME “A competitive SME.” Financial innovation can be practically implemented into the transactions of SME, which eventually aids SMEs to be more competitive compare to their competitors.