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Public Policies on Innovation and Small Businesses in a Swinging Economy Summary
“Public Policies on Innovation and Small Businesses in a Swinging Economy” is a paper whose primary purpose is to analyze whether public policies supporting small businesses are adequate. A proposition is made, basing its claims on the assumption that the use of innovation policies is to foster socio-economic development. The central idea is that the focus of innovation policies is on big business enterprises, therefore giving the small businesses little or no attention at all.
Policymakers and academicians have concentrated on large scale businesses in doing innovation benchmarks living the small businesses alone. This is a poor idea since small businesses serve as the back born of the economy of the country. Innovation has also been linked to R&D and technology, in which case, do not form the major causes of the things that lead to change (Glessia S, Serio D, Carlos L, Bezerra & Danilo, 2019). This generalization brings about a business that makes life hard for small companies since they become marginalized in most of the fields of study.
The misleading thing is that the formulators of these policies do not care about the relevance and accuracy of the system to small businesses. The main concern is the efficiency of big enterprises. This is misleading since, even in most of the developing nations, the focus is on small businesses since they are aware that this is where innovation is found.
An innovation policy involves government activities that are formed into plans, programs, actions, and projects that perpetuate innovation. The reason why most of the public policymakers ignore the significance of small businesses is that they do not know about innovation and entrepreneurship. These policies are informed by economic theories that guide a country, and that why it appears to be following a rigid system. An example of such methods includes classical and Keynesian economics. Traditional economies look at the efficiency of the markets in the production and allocation of resources. Keynesian economics, the government, actively plays a role in the fiscal and monetary aspects that brings about stabilization in the market.
Superior to the above economies is the Schumpeterian economy, whose primary focus is on innovation, which is the foundation of change. In these economies, small businesses are considered since the idea is to encourage innovation. This is because failure to embrace the small companies would lead to miserable jobs, low levels of income, and an increased rate of unemployment.
In a swinging economy, small businesses are the most suitable. This is because they are social setups, interacting directly with the locals, and are settled as entrepreneurs to afford life. The majority of the regions occupied by people are rural areas and in small towns where these small businesses are located. This is because small businesses provide goods and services at customer convenience and in the nearest way possible. The prices are relevant and can afford as compared to large companies. Small companies bridge the gap between the poor and the rich. This is achieved through the establishment of independence. They lessen unemployment by creating jobs for more people.
Some of the propositions include that public policies on innovation should put into consideration both regional and local development. The second proposition is that the metrics and the objectives of general policy, formulate for change must be in line with the targeted audience (Glessia et al., 2019). Public policies are also required to capture and assimilate the knowledge that people have locally and also focus on the manger, especially in small businesses. The other consideration is the profile of the small business. The implementation of all these propositions would bring inclusivity of the small businesses.
The methodology followed qualitative documentary research. The sources of data used in the analysis comprised mainly of texts from the Brazilian government, namely, federation, municipalities, and states. A classification form was generated that would identify the characteristics of the audience, the general aspects, and the features and the actions. A proper way for every policy was also formulated, and all the information complied as one document in an excel spreadsheet.
Results from the research indicated that most of the ministries and other agencies of the Brazilian economy know the importance of innovation, but there are no policies to support innovation (Glessia et al., 2019). Some systems have the potential of being innovative, not identified in themselves as innovation. States state foundation secretaries’ websites do not contain any information about the change. This effort towards change was only evident at regional levels.
In conclusion, innovation policy should aim at building a strong nation and give room for the exploration and discovery of potential innovations within the resources in the region. Contrary to these, the currently available policies do not support the development of small businesses in the economy. There is a substantial short-sightedness towards innovation policies as they focus more on wealth creation, which is not even distributed well, paving the way for poverty. Innovation policies on small businesses should, therefore, be considered if an economy is to realize growth, in every part of the economy, everyone inclusive.
References
Glessia S, Serio D, Carlos L, Bezerra & Danilo E. (2019). Public Policies on Innovation and Small Businesses in a Swinging Economy. Brazilian Administration Review. DOI:10.1590/1807-7692bar2019180140