Entrepreneurial Small Business Exam 1 (Ch.1)

innovation

The entrepreneurial focus which looks at a new thing or a new way of doing things.

creation

The entrepreneurial focus which looks at the making of new entities .

Customer-focus

The entrepreneurial focus which refers to being in tunes with ones market.

Independent entrepreneurship

The form of entrepreneurship in which a person or group own their own for-profit business.

Good or services

The tangible things (goods) or intangible commodities (services) created for sale.

efficiency

The entrepreneurial focus which refers to doing the most work with the fewest resources.

social entrepreneurship

The form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities.

Small and medium enterprise

The international term for small businesses.

focuses of entrepreneurship

The key directions the organization intends to pursue.

In a High-growth ventures....

- preferred funding sources ? other peoples money -When the firm's in trouble? sell more -Whats more important? Marketing -Personal control preference? Involves key others -Focus? effectiveness -Metastrateg? Novelty -External control preferences? control market -grow? when possible -Human resources? prodessionalize -Acceptance? external legitimacy -What limits growth? market response -delegation orientation? delegation is essential

In a small businesses.....

- preferred funding sources ? owner's money -When the firm's in trouble? Cut costs -Whats more important? Sales -Personal control preference? Retain autonomy -Focus? Efficiency -Metastrateg? Imitation -External control preferences? control firm -grow? when necessary -Human resources? personalized -Acceptance? personal validation -What limits growth? loss of control -delegation orientation? delegation is difficult

independent small business

A business owned by an individual or small group.

Owner-managed firms

A business run by the individual who owns it.

High-performing small business

A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business. -sales 100,000 and 1,000,000 -20% small business fall into this category

High-growth Ventures

A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business. -sales more than $1 million -5%

Efficiency-driven economy

A nation where industrialization is becoming the major forces providing jobs, revenues, and taxes, and where minimizing costs while maximizing costs while maximizing productivity is a major goal.

Small Business Administration

A part of the U.S government which provides support and advocacy for small businesses.

Small Business

Involves 1-50 people and has its owner managing the business on a day-to-day basis.

Self-employed

Working for yourself

Buyers

people who purchase an existing business.

What type of business is imitative?

small business

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business.

Traditional small business

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. -sales $25,000-$1,000,000 -22% small business fall into this category

factor-driven economy

A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.

Innovation-driven economy

A nation where 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.

Entrepreneur

A person who owns or starts an organization, such as a business.

Self-efficacy

A person's belief in his or her ability to achieve a goal.

Lifestyle or part-time firms

A small business primarily intended to provide partial or subsistence financial support for the existing lifestyle or the owner, most often through operations that fi the owners schedule and way of working. -sales $25,000 a year or less -53% of small business fall into this category

overall growth strategy

One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm.

Serial entrepreneurs

People who open multiple businesses throughout their career.

mindshare

The degree of attention your target market pays to your idea or organization.

Intention

The desire to start a business and is the most frequently occurring element of the BRIE model.

growth rewards

what people get from facing and beating challenges.

What are the four elements needed to get your business started (BRIE)?

1) Boundary 2) Resources 3) Intention 4) Exchange

what are the three most popular types of rewards for small business owners?

1) Growth 2)Flexibility 3) Income

What are the strategies what can help you achieve your dreams as a business owner?

1) If you don't succeed the first time, try again 2) Scale back- start smaller and build up 3)Bird in the hand- "Effectuation" - do the best you can with what you already have 4) Pivot- start business but look for better opportunites 5)Take it on the road-- in person or online 6)Ask for help -- crowdsourcing 7)Plan to earn

What are the four ideas that entrepreneurial small business believes that will help you understand the business and make your dreams comes true?

1) believe that you can do this 2) planning+action=success 3)help helps 4)Do well. Do Good.

What are the four businesses Michael Dell developed?

1) selling collectible stamps through mail 2) selling newspaper subscriptions by phone from home 3) Reselling IBM PCs from dorm room 4) Selling PCs-- Dell computers

What are the top 10 occupations with the highest numbers of entrepreneurs?

1)Owner-mangers 2) Farmers 3)Retailers 4)Carpenters 5) Child care workers 6) Construction workers 7) Wholesalers 8) Hairstylists 9)Real estate agents 10) Drivers

Main street businesses

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.

Franchise

A prepackaged business bought, rented, or leased from a company called a franchisor.

virtual instant global entrepreneurship (VIGE)

A process that uses the internet to quickly create businesses with a worldwide reach.

CIS entrepreneurship

Acronym for the three forms of entrepreneurship corporate, social and independent.

effectuation

An approach used to create alternatives in uncertain environments.

Firm

An organization that sells to or trades with others.

The ___ Model describes how entrepreneurship plays out throughout our society through what three things?

CSI ; 1) corporate 2) social 3) Independent entrepreneurship (includes small businesses)

Novelty

Characterized by being different or new.

Imitative

Characterized by being like or copying something that already exists.

ecommerce

Conducting business on the internet

Crowdfunding

Funding a business online through the collective involvement of others who provide donations, loans or investments.

What countries are an innovation-driven economy? Entrepreneurship levels are where?

Germany, Republic of Korea, and U.S ; Lowest

Who labeled the process creative destruction ?

Joseph Schumpeter

Exchange

Moving resources, goods, or services to others, in exchange for money or other resources. -- If firm doesn't exchange, there is no "business" taking place.

crowdsourcing

Techniques often based on internet based services to get opinions or ideas through the collection involvement of others.

Flexibility rewards

The ability of business owners to structure life in the way that suits their needs best.

Income rewards

The money made by owning ones own business.

Occupation

The type of activity a person does regularly for pay.

Creative destruction

The way that newly created goods, services, or firms can hurt existing goods, services or firms.

Exporting through ___ and ___ approaches is a major economic force for small businesses worldwide.

VIGE ; Traditional

Small business offer many benefits to localities including ?

employment, taxes, new revenue inflow, support for other businesses, and visibility.

factor-driven economies such as Pakistan, Jamaica and Venezuela, entrepreneurship level are very __?

high

What are the opportunities of small businesses?

moving up in the economy and society, the opportunity for customers and businesses large and small to obtain needed goods and services

Why are there more firms than entrepreneurs?

Because entrepreneurs become serial entrepreneurs.

Innovativeness

Refers to how important a role new ideas, products, services, processes, or markets play in an organization.

What countries are an efficiency -drive economy ? Entrepreneurship levels are where?

Russia, Brazil, and China ; in the middle range

__ module is a self-assessment that can help you recognize what important steps you have taken to start your business, and what remains to be done.

Skill Module

Heir

A person who becomes an owner through inheriting or being given a stake in a family business.

What are the four generic growth strategies that account for nearly all businesses?

1) Lifestyle or part-time firms 2)Traditional small business 3) High-performing small business 4) High-growth ventures

What are the five Myths that potential entrepreneurs say?

1) Not enough finacing 2) cant start business during a recession 3) to make profits, you need to make something 4) if you fail, you can never try again 5) Students don't have the skills to start a business

The more ___ activites that were pursued, the greater the likelihood of the new business surviving.

BRIE

___ model factors outlines the activities that need to take place to get a firm going.

BRIE

Entrepreneurial businesses are characterized by ___ in their products, services, or business models.

Novelty

founders

People who create or start new businesses.

Perseverance

The behavior of continued effort to achieve a goal.

corporate entrepreneurship

The form of entrepreneurship which takes place in existing businesses around new products, services, or markets.

resources

The product or service to be offered, informational resources on markets and running a business, financial resources, and human resources such as your own time to devote to the business.

Forms of entrepreneurship

The settings in which the entrepreneurial effort takes place.

Why are small businesses important ?

They are the major source of new jobs in our economy and major source of innovations in society.

Entrepreneur

anyone who owns a business

____ are techniques that help with financing .

bootstrapping

Necessity-drive entrepreneurship

creating a firm as an alternative to unemployment.

opportunity-driven entrepreneurship

creating a firm to improve one's income or a product or service.

What new sources are providing funding for entrenprnuers?

crowdfunding

Boundary

something that sets it up as a firm, and sets it off from the buying or selling or bartering. Ex: business name or government registration