Survival Competencies in SMEs in Changing Business Environments

The research focuses on competencies in SMEs, and especially competencies in innovation situations caused by external or internal structural changes or transitions. Economic crisis, industrial structural changes or even changes in polity challenge firms, and especially small and medium-sized firms. These external changes affect their existing skills, capabilities, attitudes and behaviors; in other words, competence and competency. When economic situations change, competencies have to change as well. SMEs have a strong impact on common economic development, innovation and new job creation, and it is important to recognize the SME competences as a reforming element in increasing welfare. The qualitative research in Finnish and Russian SMEs highlights entrepreneurial and managerial skills with open-minded attitude and emphasizes the difficulties in returning back to earlier phases in the entrepreneurial process.