Innovation has been seen as a "nice to have" by many small businesses but a recent study by Intuit Inc. shows that the ability to innovate is fast becoming a necessity for survival.

The findings published in the Future of Small Business Report shows that innovation will be essential for small businesses over the next decade as they try to thrive and survive by seizing new opportunities, improving their competitive position and providing more value to their customers. The survey, conducted in December 2008, found that nearly 9 out of 10 small business owners see opportunities for their business despite the stagnant economy.

According to the report, small businesses have six important innovation advantages that enable them to identify and react to changing conditions compared to large corporations:

1. Personal passion: Personally invested, most small business owners are willing to try new approaches to make their business more successful.
2. Customer connection: A deep and direct relationship with the market and customers helps small businesses understand customer needs, identify new opportunities, and fix problems quickly and efficiently.
3. Agility and adaptation: Unlike large corporations, small businesses can quickly adapt to changing market conditions and implement new business practices.
4. Experimentation and improvisation: When pursuing new opportunities, many small business owners and managers aren’t afraid to experiment and improvise, accepting failure as part of the path to success.
5. Resource limitations: Small businesses are adept at doing more with less. And these resource constraints lend to their innovative mindset.
6. Information sharing and collaboration: Small businesses traditionally rely on strong social networks to share information and inspire innovative thinking.

What do you think? Is innovation a "must" or can a small business do just well using traditional, proven ways? Is it too expensive to experiment as a small business, given the limited resources and the uncertain results?

If you found an innovative way in your business, what have you improved and how did it work for your bottom line?

 I think that thinking globally is no longer the best strategy for small business.  At least not as small as mine.
I think and promote locally a local product that people seem to want. 
Innovation is great and its always good to come up with new and interesting products, but I have also found that many people want things that they recognize and are comfortable with already.  Price point is very important especially today when there is little expendable money in most peoples pockets. 

 I think the need for innovation depends on what business your in Alex.  You for example have to stay on the cutting edge of software aimed at certain internet operations and/or web page design.  Where as other small businesses haven't changed the way they do things in decades and are still thriving. 
  On the flip side there are businesses that failed to take advantage of their position and went under.  You need only look at the auto industry to see that.  I think you have to be able to look at yourself and your business with a critical eye now and then and ask "What can I be doing better?"  It is in trying to get better at what we do that we see innovation.  Personally I think if it's a necessity your customers will let you know about it one way or the other.

Greg - You said it well: innovation is anything we do to get better at what we do in our businesses (I would add: as long as it is not already being done by our direct competitors). It doesn't have to be a huge breakthrough, it doesn't even need to be a completely new idea. As long as it is new to your industry in your target market, it is innovation in my book.

Gail - Have you tried getting your cards in the stores where you noticed a lack of similar cards? Is that what the salesperson you are looking for should do, or you need somebody to sell directly to the customer? You may want to post more details, either as a reply in this discussion, or (even better - more visible) by starting a new discussion (I think it would fit nicely under "Sales").