MGT 302 Ch 2
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 their experience
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
Basic business competency
Activities that relate to the organizational and business processes of a firm
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
Comprehensive planners
Entrepreneurs who develop long-term plans for all aspects of the business
Opportunistic planners
Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation.
Reactive planners
Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts
Competencies
Forms of business-related expertise. The BRIE model helps us focus on those few competencies that are essential to successfully starting and running a business.
Late career (second career) entrepreneurs
People who begin their businesses after having retired or resigned from work in corporations at age 50 or later.
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
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 - causes shortage of time.
Time management
The organizing process to help make the most efficient use of the day. Techniques are:
Action
The visible behavior a person takes
Family business
A firm in which one family owns a majority stake and is involved in the daily management of the business. Communication-based integration can be more effective. Typical challenges: Role conflict and Succession
Key business functions
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources
Prevention focus
An entrepreneur's attention to minimizing losses, with a bias toward inaction or proactive action to prevent loss
Critical-point planners
Entrepreneurs who develop plans focused on the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning
Succession
The process of intergenerational transfer of a business
Specialized business professionalization
A situation that occurs 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
Planning success
In terms of getting a start-up launched, keeping it going, and making a living from it, comprehensive planners do the best, followed by critical-point planners, and opportunistic planning types. Reactive and habit planners generally do very poorly in business, even if they manage to get their firms started
Five Ps of Entrepreneurial Behavior
passion, Perseverance, Promotion/prevention (regulatory) focus, Planning style, Professionalization
Promotion focus
An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains
Habit-driven planners
Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines
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