Rural small enterprises, especially those which are involved in processing and packaging food products, play an important role in creating opportunities for employment and producing value added products in the agriculture sector. However, a major challenge for these enterprises is a lack of sustainability. In this research, innovation was examined as the key factor for sustainability of small rural enterprises. The findings show regional cooperatives perform better in terms of innovation compared to private enterprises. This advantage could be seen in both product/service and market innovations.
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