bus 321 exam 1
three ways passion is displayed
1.by looking at the challenges of the business in a creative way 2.by being persistently focused on the business 3.by being absorbed by the tasks and concerns of the business
how much sales does lifestyle or part-time firms have
25 thousand a year or less
skills identified with the energy and focus needed to bring a business into existence
Determination competencies
vAchieving Sustainability (1 of 2) vSustainable entrepreneurship 9identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes 9Green entrepreneurship vAchieving Sustainability (2 of 2) vISO 14001 certification 9A certification awarded to organizations for creating and implementing an environmentalmanagement system that meets the requirement of the International Standards Organization. v
achieving sustainability
the visible behavior a person takes
action
The differences between small businesses and high-growth ventures aren't just semantic. They're fundamental.
aren't just semantic. They're fundamental.
vAsking for Help vRequest from people you trust vAsk for specific behavior vDo not be defensive vDo not overreact or underreact vSummarize what was said to ensure understanding vExplain what you are going to do about feedback vThank the person for the input vFollow through v
asking for help
understanding the organization and business processes of a firm
basic business competency
four key ideas to starting an entrepreneurial small business
believe you can do this planning+action=success help helps do well. do good.
Using low-cost or free techniques to minimize your cost of doing business.
bootstraping
Four Elements Needed to Get Your Business Started (BRIE)
boundary, resources, intention, and exchange
people who purchase an existing business
buyers
A person's way of perceiving and thinking about his or her experience
cognition
forms of business-related expertise
competencies
Entrepreneurs who develop long-range plans for all aspects of the business
comprehensive planners
form of entrepreneurship which takes place in existing businesses around new products, services or markets
corporate entrepreneurship
A theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity (which is like going down a corridor) you will encounter other opportunities.
corridor principle
focus which looks at the making of new entities
creation
The way that newly created goods, services, or firms can hurt existing goods, services, or firms.
creative destruction
Entrepreneurs who develop plans focused on the most important aspect of the business first
critical-point planners
Funding a business online through the collective involvement of others who provide donations, loans, or investments.
crowdfunding
techniques often based on Internet-based services to get opinions or ideas through the collective involvement of others.
crowdsourcing
focus on which refers to being in tune with one's market
customer-focus
vMake it easy for people to contact you vTake the initiative to ask others on the network to link with you vFind and link up with network mavens vKeep at it—successful online networking requires consistent involvement
developing a social network
vSocial network 9the entrepreneur's set of relationships and contacts with individuals and institutions 9way to work trust, reciprocity, and long-term relationships into your day-to-day business operations.
developing a social network
vThe action of each person helping another=Mutuality vNetworking= Interacting with others in order to build relationships useful to a business. v
developing a social network
An approach used to create alternatives in uncertain environments.
effectuation
focus which refers to doing the most work with the fewest resources
efficiency
A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity (i.e. efficiency) is a major goal
efficiency-driven economy
a person who owns or starts an organization, such as a business
entrepreneur
vThe Entrepreneurial Life Cycle (1 of 6) vBusiness life cycle 9The sequence or pattern of developmental stages any business goes through during its life span. vThe Entrepreneurial Life Cycle (2 of 6) vEmergence 9The first stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business t actually starting the business. vExistence 9The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances. vThe Entrepreneurial Life Cycle (3 of 6) vLiability of newness 9The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business. vThe Entrepreneurial Life Cycle (4 of 6) vSuccess 9The third stage of the business life cycle marked by the firm being established in its market, operation, and finances. vResource maturity 9The resource maturity stage is the most typical fourth stage of the small business 9Characterized by relatively stable or slowly rising sales and profits over several years. 9In a firm that has a takeoff stage following the success stage, the resource maturity stage occurs after takeoff. vThe Entrepreneurial Life Cycle (5 of 6) vSlack resources 9Profits that are available to be used to satisfy the preferences of the owner in how the business is run. vThe Entrepreneurial Life Cycle (6 of 6) vTakeoff 9This stage occurs after the success stage for a small percentage of businesses. 9Characterized by rapid growth (5-10 percent amonth or more). 9When this growth levels off, the firm enters the resource maturity stage. v
entrepreneurial life cycle
Majority of new businesses have a team of two or more co-owners Most teams are family related More than half of teams are spouses or life partners working together
entrepreneurial teams
vEnvironmental Scanning for Small Business (1 of 2) vLook for trends in the trade press of your industry vAsk your customers and suppliers what they see on the horizon vKeep notes on the things that bother you about the way work is done now and on how work has changed vSubscribe to blogs outside your area of business vEnvironmental Scanning for Small Business (2 of 2) vSocial capital 9Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur. v
environmental scanning for small businesses
A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry.
expert business professionalization
A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.
factor-driven economy
vFamily Businesses (1 of 5) vFamily business 9a firm in which one family owns a majority stake and is involved in the daily management of the business v1/3 of the Standard & Poor's 500 are family owned and managed v vFamily Businesses (2 of 5) v39% of businesses in the United States are small family businesses. vAlmost 10.8 million firms vThey employ 58% of America's workforce. v vFamily Businesses (3 of 5) vRole conflict 9the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them 9 vWhenever possible, make decisions based on business necessities. vFamily Businesses (4 of 5) vTime management 9organizing process to help make the most efficient use of the day 9List, 123 Prioritize, Delegate, Repeat, Strategize vFamily Businesses (5 of 5) vSuccession 9the process of intergenerational transfer of a business 9Lack of clear transition plan is the death knell v
family businesses
Steps in the Entrepreneurial Process
feel-check-plan-do
An organization that sells to or trades with others.
firm
vFive Skills for Managing Relationswith the Environment (1 of 2) vExternal relations 9The general description for the processes and skills used in the management of a firm's interactions with people, organizations and institutions outside of its boundary. vFive Skills for Managing Relationswith the Environment (2 of 2) Five approaches to managing relations with the environment vBuilding legitimacy vDeveloping a social network vHandling a crisis vAchieving sustainability vMaking ethical decisions v
five skills for managing relations with the environment
ability of business owners to structure life in the way that suits their needs
flexibility rewards
three key rewards all entrepreneurs talk about
flexibility, a livable income and personal growth
people who create or start new businesses
founders
a prepacked business bought rented or leased from a company called franchisor
franchise
The tangible things (goods) or intangible commodities (services) created for sale.
goods or services
Another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields
green entrepreneurship
what people get from facing and beating challenges
growth rewards
Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines
habit-driven planners
1.Admit you're in trouble - quickly 2.Get to the scene as soon as possible 3.Communicate facts you know 4.Have one person serve as the firm's spokesperson 5.Separate crisis management from the everyday management of the firm 6.Deal with the crisis quickly
handling a crisis
a person who becomes an owner through inheriting or being given a stake in a family business
heir
A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business.
high-growth venture
A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business.
high-performing small business
Characterized by being like or copying something that already exists.
imitative
money made by owning one's own business
income rewards
form of entrepreneurship in which a person or group own their own for-profit business
independent entrepreneurship
a business owned by an individual or small group
independent small businesses
activities, skills, and knowledge, specific to businesses in an industry
industry-specific knowledge
focus which looks at a new thing or a new way of doing things
innovation
A nation there the major forces for jobs, revenues, and taxes come from high-value added production based on new ideas and technologies and from professional services based on higher education.
innovation-driven economy
refers to how important a role new ideas, products, services, processes, or markets play in an organization
innovativeness
activities common to all businesses sales, operations, accounting, finance, and human resources
key business functions
displayed three of the key characteristics of successful entrepreneurs introduced in chapter 1
laura tidwell
the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors Based on people, product, or organization
legitimacy
A small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner's schedule and way of working.
lifestyle or part-time firm
A popular term for small businesses reflecting the idea that these are the kinds of firms you would expect to find on the main street of a typical American city, and are the opposite of big businesses or "Wall Street" businesses.
main street business
degree of attention to which your target market pays to your idea or organization
mindshare
a situation that occurs when the entrepreneur does nearly everything in the simplest way possible
minimalized business professionalization
Creating a firm as an alternative to unemployment.
necessity-driven entrepreneurship
vKnow who you are vKnow whom you want and why vBuddy up vBone up on the small talk vDo not forget why you're here vMake the connection vFollow up
networking skills
Characterized by being different or new.
novelty
Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it
opportunistic planners
skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
opportunity competencies
Creating a firm to improve one's income or a product or service.
opportunity-driven entrepreneurship
A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done.
organizational culture
One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm.
overall growth strategy
a business run by individual who owns it
owner-manged firms
An intense positive feeling an entrepreneur has toward the business or the idea behind the business.
passion
five p's of entrepreneurial behavior
passion, perseverance, promotion/prevention focus, planning style, professionalization
-the ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known -learned optimism
perseverance
An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.
prevention focus
vProduct-Based Legitimacy Indicators(2 of 3) vISO (International Standards Organization) 9refers to certification for having met a standard of quality that is consistently evaluated around the world vProduct-Based Legitimacy Indicators(3 of 3) vBaldrige Award 9given by the U.S. government to businesses and nonprofit organizations that have been judged outstanding in seven measures of quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results 9 v
product based legitimacy indicators
An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains
promotion focus
Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take.
reactive planners
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business Time, information, location, financing, raw materials, expertise
resource competencies
People who begin their businesses after having left, retired, or resigned from work. Can include veterans of the armed forces and civilians from a broad range of industries.
second career entrepreneurs
a person's belief in his or her ability to achieve a goal
self-efficacy
working for yourself
self-employed
people who open multiple businesses throughout their career
serial entrepreneurs
the international term for small businesses
small and medium enterprise
involves 1-50 people and has its owner managing the business on a day-to-day basis
small business
a part of U.S. government which provides support and advocacy for small business
small business administration
form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities
social entrepreneurship
A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources
specialized business professionalization
A business action that has been widely adopted within an industry or occupation
standard business practice
An approach to operating a firm or a line of business that identifies, creates, and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.
sustainable entrepreneurship
vThe Elements of the Small Business Environment (1 of 5) vInternal environment 9The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm vThe Elements of the Small Business Environment (2 of 5) vExternal environment 9The forces, institutions and people (i.e., the rest of the world) outside the boundary of the firm. vThe Elements of the Small Business Environment (3 of 5) vTask environment 9A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like. vThe Elements of the Small Business Environment (4 of 5) vGeneral environment 9A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector vThe Elements of the Small Business Environment (5 of 5) vEntrepreneurial ecosystem 9A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-upbusinesses. 9The components are entrepreneurs, government,universities, investors, service people, mentors, and large organizations. v
the elements of the small business environment
vThe Environment of Small Business (1 of 3) vEnvironment 9The sum total of forces outside of the entrepreneur and the firm. v vThe Environment of Small Business(2 of 3) vOrganizational identity 9composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories 9part of the BRIE model vThe Environment of the Small Business(3 of 3) vBootstrapping 9Using low-cost or free techniques to minimize your cost of doing business v
the environment of the small businesses
A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market
traditonal small business
myths about small businesses
vNot enough financing vYou can't start a business during a recession vTo make profits, you need to make something vIf you fail, you can never try again vStudents don't have the skills to start a business vNinety percent of all new businesses fail within two years
process that uses the Internet to quickly create businesses with a worldwide reach. Depends on using websites like eBay (for products) or Upwork (for services) to quickly establish a global presence.
virtual instant global entrepreneurship (VIGE)
vWomen and Minorities in Small Business (1 of 5) vWomen-owned businesses are one of the fastest-growing sectors of all United States businesses v29.6% of all businesses are majority owned by women, with 17.5% equally owned by men and women vWomen and Minorities in Small Business (2 of 5) vMinority-owned businesses represent 14.6% of all United States businesses. v2007-2012 Growth rates 9General Business 10% 9Minority-owned 27% vWomen and Minorities in Small Business (3 of 5) vDiscrimination in financing 9Minority applicants were denied at twice the rate of whites. 9Asian and Hispanic owners pay higher interest rates on their loans vWomen and Minorities in Small Business (4 of 5) vSet asides 9Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms vWomen and Minorities in Small Business (5 of 5) vCertification 9an examination base acknowledgement that the firm is owned and operated as specified v v
women and minorities in small businesses