Grassroots SMEs development & improving standard of living: the innovation and policy gap the case of Malaysia and Zanzibar

Abstract

Recently, the application of science, technology and innovation to Small and Medium Enterprises development programs has been highly considered by both national and international communities as a strong tool for increasing production and facilitating economic growth and improving standard of living. However, the situation at the grassroots level in the developing countries like Malaysia and Zanzibar the story is different. It has been observed that grassroots entrepreneurs are lack of proper innovation strategies and most of them are ignored during the development of policy stage for entrepreneurship and SMEs development and hence the national policy missed the proper policy strategies for grassroots entrepreneurs. Thus, this paper discusses the innovation and policy gap that existing at the grassroots level using extensive literature review. The paper asserts that introduction of proper innovation strategies and establishment of bottom up participatory approach on entrepreneurship development will enable a conducive small and medium Enterprises development and accelerating the local business improvement and final support for improving standards of living particularly in both countries.