Innovation and entrepreneurship in Panama: a qualitative analysis of managerial strategies

Introduction: Innovation is a key process within small businesses, and its results directly influence their sustainability. Methodology: This qualitative study explored the barriers and facilitators of innovation in Panamanian small and medium-sized enterprises (SMEs), using grounded theory to analyze in-depth interviews with 20 entrepreneurs in the service sector in the subcategories of technology and tourism. Results an Discussion: The results revealed that lack of financing is the main barrier, followed by a shortage of trained personnel and resistance to change. Government support, collaborative networks, and access to technology were identified as facilitators. SMEs implement strategies such as product and process innovation and digital marketing, although they face challenges to their sustainability. Conclusions: The study highlights the need for public policies that facilitate access to financing and training, as well as the importance of strengthening the innovation ecosystem in Panama. As a result, practical recommendations are proposed for decision-makers, support organizations, and entrepreneurs to boost innovation and growth among Panamanian SMEs.