Innovation And The Basis Of Success

To this end, the company should try to answer questions like: What which will be based innovation in processes, products, in both after-sales services?. The formulation of the strategy also involves defining the method to gauge and mitigate the risk that such activity entails. This is particularly critical for SMEs, given the weakness of the financing structure that usually suffers. If a shortage of resources to finance new activities that are traditionally present in the SME, add the fact some of the difficulty in assessing the potential profitability of a new product or new processes, it is not surprising that companies innovative small and they are few – in general – require a high dose of entrepreneurial risk. Source: Ben Horowitz.

The owners – managers of the SME sector – at least at the beginning of their companies are highly innovative, especially in developing countries where the permits to build companies do not discriminate, usually depending on the size of this and is equally dense for all. Unfortunately, after start innovative, challenging and rewarding, the survival of the company generates a routine that is slowly forming managers and leaders a kind of “trap daily, sometimes supplemented with a modernization through computerized systems for accounting costs, the income tax and to enter loan applications for financial institutions. Then the old entrepreneur falls into a vicious circle in the resources needed to not only innovate, but to maintain a heavy and bureaucratic organizational structure full of everyday life. Despite the extraordinary dose of entrepreneurial spirit needed to take the risks of the activity of innovation itself, inexorably needs funding to carry it out. .