Improving efficiency in startup enterprises (evidence from Lebanon)

Abstract

Startup enterprises are considered to be one of the main pillars of economic infrastructures of nations and the governments depends on it in the creation of employment opportunities and increasing national productivity. In Lebanon, Small and Medium Enterprises, or SMEs, constitute 98% of whole companies and creates 72.8% of jobs in the market. However, a large percentage of startups in Lebanon fails within the first 5 years of operation. This study, in fact, aspires to find and apply a practical managerial methodology to provide sustainable improvement of startups performance for the ultimate purpose of increasing their survival and success chances. Our study is based on the Socio-Economic Approach to Management, or SEAM, which is an intervention research methodology. It was conducted on an advertising and production company in Lebanon. The intervention research approach we have adopted is a transformative approach to introduce efficiency improvement in startups. Based on SEAM change management approach, our purpose in this study is to recognize the dysfunctions in realistic and practical ways through the qualimetric analysis, extract the hidden costs generated from these dysfunctions, develop solutions for them, and implement these solutions with the help of a set of managerial tools offered by SEAM. Through this research, we were able to apply the basic concepts and principles of SEAM and we were able to achieve measurable improvement in the performance of the startup under study. This study was mainly concerned in the strategy generation and strategic implementation for startup enterprises and the impact of implementing a successful strategy in improving the efficiency and thus increasing the rate of success among startups.