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Open AccessArticle

Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation

1
Department of Finance, The Bucharest University of Economic Studies, 6 Piata Romana, 010374 Bucharest, Romania
2
Department of Informatics, Statistics and Mathematics, School of Computer Science for Business Management, Romanian-American University, 1B Expozitiei Blvd, 1st District, 012101 Bucharest, Romania
3
Doctoral School of Sociology, University of Bucharest, 36-46 Mihail Kogălniceanu Blvd, 050107 Bucharest, Romania
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(1), 347; https://doi.org/10.3390/su12010347
Received: 16 November 2019 / Revised: 16 December 2019 / Accepted: 23 December 2019 / Published: 1 January 2020
(This article belongs to the Section Economic and Business Aspects of Sustainability)
Small and medium-sized enterprises (SMEs) are crucial for local economic development, playing a noteworthy role in job creation, poverty alleviation and economic growth, but they encounter many funding barriers. The purpose of the current paper is to investigate the impact of investments and innovation on territorial economic growth, as measured by turnover, for Romanian active enterprises, especially SMEs, over the period 2009–2017. By estimating several log–log linear regressions, the quantitative outcomes provide support for a positive influence of investments on turnover. The association was confirmed both for all active enterprises at the national level, as well as for micro, small, middle-sized and big companies. As regards expenditures on innovation, a positive impact on turnover was acknowledged for all enterprises and particularly for big companies, but there was an absence of any statistically significant relation in the case of SMEs. The impact of firm size on turnover was positive for all active enterprises at the national level, along with active micro-units. Also, the estimation results show a positive impact of the number of active micro-units on territorial economic growth. The empirical findings are relevant to managers and policymakers in order to stimulate, encourage and offer support to SMEs’ development through their strategies. View Full-Text
Keywords: SMEs; turnover; investments; innovation; competitiveness; regression analysis SMEs; turnover; investments; innovation; competitiveness; regression analysis
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MDPI and ACS Style

Gherghina, Ș.C.; Botezatu, M.A.; Hosszu, A.; Simionescu, L.N. Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation. Sustainability 2020, 12, 347. https://doi.org/10.3390/su12010347

AMA Style

Gherghina ȘC, Botezatu MA, Hosszu A, Simionescu LN. Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation. Sustainability. 2020; 12(1):347. https://doi.org/10.3390/su12010347

Chicago/Turabian Style

Gherghina, Ștefan C.; Botezatu, Mihai A.; Hosszu, Alexandra; Simionescu, Liliana N. 2020. "Small and Medium-Sized Enterprises (SMEs): The Engine of Economic Growth through Investments and Innovation" Sustainability 12, no. 1: 347. https://doi.org/10.3390/su12010347

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