Entrepreneurs

Two types of entrepreneurs

Necessity Entrepreneurs and Opportunity Entrepreneurs

The Five Ps of Entrepreneurial Behavior

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

Opportunistic planners

START WITH A GOAL instead of a plan and look for OPPORTUNITIES to achieve said goal

Standard business practice

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

Expert business professionalization

a situation that occurs when ALL MAJOR FUNCTIONS of a firm are conducted according to the standard business practices of its industry

perserverance

ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known

Promotion-prevention focus

attention to MAXIMIZING GAINS + MINIMIZING LOSSES

Planning styles

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

Necessity-driven 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

Habit-driven planners

entrepreneurs who DO NOT PLAN, preferring to let all actions be dictated by their ROUTINES

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

passion

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

Professionalization

standard business practices, expert business professionalization, specialized business professionalization, minimized business professionalization

specialized business professionalization

when businesses have founders or owners who are passionate about ONE OR TWO KEY BUSINESS FUNCTIONS, such as sales, operations, accounting, finance, or human resources

minimized business professionalization

when the entrepreneur does nearly everything in the simplest way possible

entrepreneurial life cycles

1. emergence 2. existence 3. success 4. take off (for high-growth ventures)

Reactive planners

entrepreneurs with a passive approach, who WAIT FOR QUEUES FROM THE ENVIRONMENT to determine what actions to take