MGT 427.S13

social network

the entrepreneur's set of relationships and contacts with individuals and institutions

Describe the BRIE model.

Boundary: creating a place for your business--actual location and in people's minds Resources: the money, product, knowledge, etc. that make up the business Intention: the desire to start a business Exchange: moving resources/products/services in exchange for money

What common analysis is performed on a potential business idea?

I2P analysis

Explain the SCAMPER tool used to generate new business ideas.

Substitute- think of what you might substitute for something else to form a new idea Combine- think of possible combinations you can make that result in something entirely different Adapt- think about what can be adapted from what already exists Magnify/modify-change the appearance or increase hours or advertising to magnify or modify an existing idea Put to other uses-generate non-traditional uses Eliminate-search for opportunities to get rid of something or stop doing something Rearrange or reverse-how can you rearrange the way your product is presented

standard business practice

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

career

a lifelong series of jobs or occupations

Dynamic Capitalism Typology

a model of an economy categorizing businesses based on their innovativeness and growth rate.

small business adminstration

a part of the United States government which provides support and advocacy for small businesses.

resource constrained sector

consists of firms high to innovation but low in growth rate due to a lack of resources

glamorous sector

consists of firms with high growth and high innovation. These are among the most visible firms in the media

high-growth venture

firms with exceptionally high innovativeness and growth rates, making them candidates for possible venture capital funding

competencies

forms of business-related expertise

set-asides

government contracting funds which are earmarked for particular kinds of firms, such as small-business, minority-owned firms, women-owned firms, etc.

zoning laws

government specifications for acceptable use of land and buildings in particular areas

idea person personality type

hard worker, loner (but could team up), fast learner, socially isolated, fame seeker, risk taker

Describe more and less legitimate certifications.

more legit: ISO, Baldridge Award, minority or women-owned business less legit: none or self-certified

Describe more and less legitimate experiential supports.

more legit: documentation, demonstration offered less legit: none offered

habitual entrepreneurs

owners for a lifetime, sometimes in one business, sometimes across several firms

occasional entrepreneurs

people who generally have another job that is their primary one

Building "changeability" into a core business is possible if you actually _______________.

practice change

innovativeness

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

potential for growth

refers to the potential market size

opportunity recognition

searching and capturing new ideas that lead to business opportunities.

incremental strategy

taking an idea and offering a way to do something slightly better than it is done presently

flexibility rewards

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

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

mutuality

the action of each person helping another

professionalization

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

succession

the process of inter-generational transfer of business

occupational structure

the sequence or organization of jobs and careers in the economy

creative destruction

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

growth rewards

what people get from facing and beating challenges

part-time self-employment

working for yourself for 35 or fewer hours a week

What are the three general forms of legitimacy you can build?

1. based on your people 2. based on your product 3. based on your organization

Nearly all entrepreneurs talk about three key rewards. What are they?

1. flexibility 2. a livable income 3. personal growth

What are some common pitfalls of business owners?

1. identifying the wrong problem 2. judging ideas too quickly 3. stopping with the first good idea 4. failing to get the "bandits on the train" and ask for support 5. obeying rules that don't exist

What two hurdles do people need to overcome to move from thinking about small business to actually achieving it?

1. moving from inaction to action 2. taking the right actions

What are five myths about owning small businesses?

1. not enough financing 2. you can't start a business during a recession 3. to make profits, you need to make something 4. if you fail, you can never try again 5. students (or moms or some other group) don't have the skills to start a business

independent small business

a business owned by an individual or small group

incubator

a facility which offers subsidized space and business advice to companies in their earliest stages of operation

general environment

a part of the external environment made up of sectors of major forces that shape the people and the institutions of the task and internal environments

task environment

a part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, etc.

entrepreneur

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

creativity

a process producing an idea or opportunity that is novel and useful

organizational structure

a set of shared beliefs or basic assumptions that demonstrate how things get done

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

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, financing, or human resources

minimalized business professionalization

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

crisis

a situation that poses a major problem for the business or its people, in which the survival of the business is at stake, and immediate action is necessary

utilitarianism

an ethical model that supports seeking the greatest good for the greatest number of people

golden rule

an ethical model which suggests you treat others in the manner you wish to be treated

certification

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

imitative strategy

an overall strategic approach in which the entrepreneur does more less what others are already doing

The competency suggested by boundary is called _____________.

basic business competency

Why are small businesses a key employer?

because they are more willing than most large businesses to offer jobs to people with atypical work histories or needs

What does achieving legitimacy translate to?

building trust among customers and other key groups

novelty

characterized by being different or new

imitatitve

characterized by being like or copying something that already exists

ambitious firm sector

consists of franchises and multisite firms, with low to moderate innovation and high levels of growth

Small businesses employ more than ____________ of all Americans, providing wages, salaries, and the taxes those working people pay the government.

half

small business owner personality type

hard worker, loner, socially isolated, average learner, average income seeker, risk averse

original classic entrepreneur personality type

hard worker, loner, socially isolated, fast learner, wealth seeker, risk taker

contemporary classic entrepreneur personality type

hard worker, self-sufficient, socially connected, fast learner, wealth seeker, risk manager

salesperson entrepreneur personality type

hard worker, team player, socially connected, fast learner (socially), average learner (technologically), acceptance seeker, risk averse

managerial entrepreneur personality type

hard worker, team player, socially connected, fast learner, wealth seeker, risk averse

Describe some of the needs that someone who was looking to start a small business venture would have

how to start with small resources from owner, family, or friends how to grow on schedule set by owner knowledge base is immediate marketplace and communities maximum flexibility with a comfortable level of sales

networking

interacting with others in order to build relationships useful to business

small business

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

growth entrepreneurs

lifetime owners with the goal for major success, often leaving one business for a more growth-oriented company before leaving the first venture

Describe more and less legitimate intellectual property.

more legit: has trademarks, service marks, patents, or copyrights less legit: none

Describe more and less legitimate customer service.

more legit: providing customer service less legit: no customer service

harvest entrepreneurs

owners with an exit plan, work first play later mentality

Describe some of the needs that someone would have who was looking to start a high-growth venture.

seek and obtain financing (venture capital) need to dominate market need to know how to grow dramatically and quickly would want to know how to cash out through the sale of an initial public offering of stock or through the sale of the company to a larger company/set of investors

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

legitimacy

the belief that the firm is worthy of consideration of doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors

external environment

the forces, institutions, people outside the boundary of the firm

owner-manager

the individual who owns and runs a business

small and medium enterprise

the international term for small businesses

covenants

the limitations imposed on your property by your neighborhood group

income rewards

the money made by owning one's own business

economic core sector

the most numerous and most widely available type of firm, also called small business, ranging from low to moderate levels of innovation and growth

entrepreneurial alertness

a special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for the opportunties

key business functions

activities common to all businesses such as sales, operations,

industry-specific knowledge

activities, knowledge, and skills specific to business in a particular industry.

spiral entrepreneurs

alternate periods of growth and stability which are determined by personal or family needs

network marketing

an approach to selling in which the salesperson recruits customers to become distributors of the product or service to others

billboard principle

an ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see.

universalism

an ethical model that suggests that there is a code of right and wrong that everyone can see and follow

Access problems for women and minority-owned small businesses crop up most often as ________________.

discrimination in financing

Describe more and less legitimate media product/service visibility.

more legit: interviews, articles, placements, or columns in print or electronic media about the product less legit: little or no attention in print or electronic media about the product

Describe more and less legitimate quality standards.

more legit: meets or exceeds industry standards for quality less legit: fails to meet quality standard

Describe more and less legitimate testimonials.

more legit: present testimonials from customers satisfied with the product less legit: no information from users

Describe more and less legitimate customer assurance.

more legit: publicly stated guarantees, bonding less legit: none stated or given

Describe more and less legitimate industry leadership.

more legit: setting technological or service standards adopted by competitors less legit:common technologies or services

Describe more and less legitimate environmental friendliness.

more legit: uses recyclable materials less legit: shows no concern for the environment

small business development center

offices co-sponsored by the state and federal government that offer free or low cost help to existing and potential small businesses

Name some possible sources for business ideas.

1. work experience 2. similar businesses already running 3. hobby or personal interest 4. chance happening or serendipity 5. family and friends 6. education and expertise 7. technology transfer and licensing

What are three circumstances in which it may be better to undertake a part-time business as opposed to a full-time one?

1. you want to gain experience 2. you lack resources for a full-scale business 3. there is a narrow window of opportunity

At any moment ______% of the adults in the United States think about owning their own business, but only one person in ______ who thinks about it actually starts a business.

44% 9