business ch 2

key business functions

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.

set asides

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

5 P's of Entrepreneurial Behavior

Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization

entrepreneurial mindset

The motivations, cognitions, attitudes, aptitudes, and behaviors that lead to a propensity to create solutions to problems or seek opportunities to do something new or better.

Standard business practice

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

cognition

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

stakeholder

a person, organization or entity that has interest ir concern in a particular business or decision

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, rather than the professional way

industry-specific knowledge

activities, knowledge, and skills specific to businesses in a particular industry

Certification

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

five types of planners

comprehensive, critical-point, opportunistic, reactive, habit based

promotion focus

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

prevention focus

entrepreneur's attention to minimize losses with a basis to ward inaction or protective action to prevent loss

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

habit-based 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

reactive planners

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

Competencies

forms of business-related expertise

passion

intense positive feeling an entrepreneur has toward the business or idea behind the business

determination competencies

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

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 such as time, information, location, financing, raw materials, and expertise

action

visible behavior a person takes

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

perseverance

the ability to stick with something even when it takes a long time, and the outcome is not immediately lnow

Professionalization

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