BUS330 Chp 2

Standard business practice

A business action that has been widely adopted within an industry or occupation

Family Business

A firm in which one family owns a majority stake and is involved in the daily management of the business

Key business functions

Activities common to all businesses sales, operations, accounting, finance, and human resources

Prevention focus

An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.

Industry-specific knowledge

Activities, skills, and knowledge, specific to businesses in an industry

Certification

An examination based acknowledgement that the firm is owned and operated as specified

Habit-driven planners

Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines

Opportunistic planners

Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it.

Competencies

Forms of business-related expertise

Perseverance

Is best thought of as a type of learned optimism, 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.

Entrepreneurial Teams

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

The Ps of Entrepreneurial Behavior

Passion Perseverance Promotion/Prevention focus Planning style Professionalization

Late career entrepreneurship

People who begin their business after having retired or resigned from work in corporations at age 50 or later A.K.A (Second career entrepreneurship)

Determination competencies

Skills identified with the energy and focus needed to bring a business into existence

Role conflict

The kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them

Expert business professionalization

A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry.

Minimalized business professionalization

A situation that occurs when the entrepreneur does nearly everything in the simplest way possible

Reactive planners

Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take.

Action

The visible behavior a person takes

Cognition

A person's way of perceiving and thinking about his or her experience

Specialized business professionalization

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

Promotion focus

An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains

Passion

An intense positive feeling the entrepreneur has toward the business or even the idea behind the business. It comes from being actively involved in moving the business forward.

Passion is displayed by:

By looking at the challenges of the business in a creative way By being persistently focused on the business By being absorbed by the tasks and concerns of the business

Comprehensive planners

Entrepreneurs who develop long-range plans for all aspects of the business

Critical-point planners

Entrepreneurs who develop plans focused on the most important aspect of the business first.

Set-asides

Government contracting funds which are embarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like

Opportunity competencies

Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business

Resource competencies

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

Professionalization

The extent to which a firm meets or exceeds the standard business practices for its industry

Time management

The organizing process to help make the most efficien use of the day

Succession

The process of intergenerational transfer of a business

Basic business competency

Understanding the organizational and business processes of a firm