Innovation and sustainability: a new challenge for Malagasy SMEs

Abstract

This research emphasises the challenges confronting Small and Medium-sized Enterprises (SMEs) in finding ways to reconcile sustainability and innovation. There are many obstacles to overcome in African countries such as Madagascar. The methodology used in conducting this research is the review of literature and the study of Malagasy SMEs case. The result of the research show that Malagasy entrepreneurs operating in the SMEs are determined to bring innovation. However, the Malagasy SMEs are confronted with the political and economic situation of the country which are putting them in an awkward position. Moreover, the scarcity of financial resources and expertise is not in favour of sustainable innovation. Innovation and sustainability require a conducive environment for their development and implementation. The diversity of resources in Madagascar constitutes a potential that should be the leverage for economic growth, which in turn offers an opportunity for Malagasy SMEs to diversify their activities. Therefore, solving these issues that prevent innovation and sustainability is fundamental so that the Malagasy SMEs’ lifecycle can be sustained in the long-term, and contribute to the economic growth of the country.

Keywords

• Innovation
• Sustainability
• Challenges
• Malagasy SMEs