Sumita Dave1 and Saket Ranjan Praveer2
Shri Shankaracharya Institute of Management and Technology, Jhunwani, Bhilai - 490020, C.G., India
1E-mail:, 2E-mail:

The paper attempts to evaluate the existing state of the internal environment in small business firms in India. It measures the opinion of both the employer and the employee regarding the climate in the organizations. Six parameters for entrepreneurs and ten parameters of employees have been assumed to be equal. The study has been conducted through descriptive research. Analysis of Variance both one factor and two factor have been applied in order to find out the similarities/ dissimilarities of opinion regarding the parameters adopted to evaluate the internal environment of the firms. From the sample study, it has been observed that the entrepreneurs believe that their firms are learning organisations whereas the employees feel that there is little scope of flexibility.

Keywords: SMEs, Entrepreneurs, Employees and Innovation.