A Proposal for a Standard With Innovation Management System

Maroun Jneid and Antoine Tannous
On the other hand, according to John Freeman, Jerome S. Engel (2007) the entrepreneur’s success
often leads to earlier rather than later replacement by more experienced top managers. This results
from the rapid increase in problem complexity attending structural and business process complexity.
Managerial work requires more sophisticated skills, and these latter are developed over time. An
entrepreneur capable of managing a company when it has twenty employees may be incapable of
managing that company when it has two thousand employees. The faster that company grows from
twenty to two thousand, the more likely is such succession of leadership.
Finally, these processes of growth include a transition in the company itself. When such companies
succeed, they transform themselves into corporations.
The business systems, organizational structures, and highly trained managers who run them produce
an organization built for efficiency. Rapid scaling of the enterprise and rising competition demand
such efficiency. However, this robs the young company of the very properties that allowed it to
innovate rapidly and seize opportunities engendered by innovation.
2.8 The financial plan factor
Managers should understand the meaning of financial data and follow the regulations which affect
financial statement of the company. Cash is the most important, yet least productive, asset that a
small business owns. Businesses must have enough cash to meet their obligations or run the risk of
declaring bankruptcy. It is entirely possible for a business to earn a profit and still go out of business
by running out of cash. Small and growing companies are like “sponges,” soaking up every available
dollar to fund growth and sales. The first step in managing cash more effectively is to understand the
company’s cash flow cycle. There are several ways entrepreneurs can improve their cash flow. This
includes being more aggressive with collectables, increasing prices, offering customers early
discounts, take advantage of vendors’ payment terms, and charging purchases to credit cards. Cash
and profits are not the same. Profit is the net increase over a period of time in capital cycled through
the business, indicating how effectively the firm is being managed. Cash is the money that flows
through the business in a continuous cycle. A business cannot spend profits only the cash it
possesses.
Entrepreneurs must learn how to manage cash flow to insure long-term success for the venture.
3. Research question
Based on our result in the literature review, our main question of research was:
Do Lebanese entrepreneurs in their early stage follow the key factors of success to their new
business idea?
According to our literature review these are the research questions that will contribute to the findings:
� Are they on familiar terms with competitive advantage, value chain, and information system? If so,
which level?
� How much are they acquainted with human resources management, innovation, marketing plan,
marketing and management analysis?
� How well do they know about organization and financial plan?
Section 2: Methodology and Empirical results.
4. Methodology
For this study, a face to face qualitative interview method was used; as a consultant in “Mauris Fadel
Prize” for young entrepreneurs in the north of Lebanon, I have select 24 qualified entrepreneurs over
60 participants. Some of these entrepreneurs are fresh graduates while the others have been
graduated six years ago; nonetheless, this entrepreneur’s experience was their first. The study had
eight objectives to cover competitive advantage, value chain, innovation, information system, human
resources and management, marketing capability, entrepreneur skills and financial plan factors for a
successful entrepreneurship.
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