Galya Taseva
Innovation and Financial Performance of SMEs in Bulgaria
Summary:
: The relationship between innovation activity and the financial performance of SMEs in Bulgaria is examined. The survey results show that there is no statistically significant relationship between the innovation activity of enterprises and their financial results, net sales, profit margins, return on assets (ROA), return on equity (ROE) and asset turnover. However, a significant dependence of the innovative activity of SMEs in the country and indicators of their liquidity, indebtedness and bankruptcy risk are revealed. SMEs that have innovation costs or have introduced in their market a new or significantly improved product, or have introduced new or significantly improved production methods in the last three years, are less liquid, more indebted and more likely to go bankrupt.
