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Seminar paper from the year 2011 in the subject Business economics - Operations Research, grade: B, King`s College London, language: English, abstract: Small and Medium sized Enterprises (SMEs) are becoming increasingly innovative in order to remain competitive. From an entrepreneurial perspective there has been an increasing reluctance from entrepreneurs and small firm owners on this changing role of growth and innovation. Current findings highlight that majority of SMEs in the United Kingdom do not actively employ other people (Small Business Service, 2004) and for those that do, only a small majority engage in innovation (Gray, 2006). Scottish policies have encouraged growth and innovation in SMEs. However, there is still reluctance amongst owners to an extent.