The role of climate in fostering innovative behavior in entrepreneurial smes

The plethora of new materials, new products, new financial networks, coupled with new joint venture possibilities, affect the way SMEs do business globally. The number of articles, books and symposia written on the role of the SMEs in developing change and innovation is overwhelming. However, the literature fails to examine the affect organizational climate has on entrepreneurs and their SME's ability to create an innovative, risk-taking orientation. For those of us involved and concerned about innovation and change, to overlook the key elements of climate distorts our understanding of the critical elements needed to foster-entrepreneurial innovations. This paper will attempt to add to our understanding of how entrepreneurs and SMEs interrelate with their climate to create innovative products and services. Researchers, managers and government officials are becoming increasingly interested in examining how individuals and SMEs can create an innovative and creative climate. This interest is fueled by the desire to understand the link between climate and the influence it has on individuals to develop and initiate new products, services and systems. This relationship between climate and innovative behavior has lead to interest in the field of small business and entrepreneurship. Our paper will attempt to further explain this phenomena from the perspective of the entrepreneur and the impact on the company