Innovation is crucial for business success, and this study looked at what factors influence innovation in small and medium-sized enterprises. The researchers found that both the characteristics of the business owner and the firm itself play a role in driving innovation. They discovered that firm size and competition affect different types of innovation, with smaller firms focusing more on marketing innovations. Additionally, the study revealed that the abilities, personality traits, and ethnicity of the owner also impact the likelihood of a firm innovating. This highlights the importance of the entrepreneur in the innovation process.