Small Biz Mngmt - Exam 1
high performing small biz
100K-1million, grow at 5-15%/year, multiple locations, 16% of biz
entrepreneurial ecosystem
A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses.
Important considerations when starting a part time biz?
Expected returns Cost of the start-up
PROFIT
Property/physical- buildings, land, equipment, raw materials relational: customers, networks, distributors, social capital Organizational: systems, structures, op. procedures financial: money, lines of credit, crowdfunding, bartering Intellectual (aka human): people and the skills they have technological: patents, trademarks, copyrights, licenses, access to technology
key components for organizing part-time biz?
The business' permanence, time to start the business, cost to start the business
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.
Major questions to ask before starting biz part-time?
What kind of products and services to sell? How to organize the biz as far as cost and time? How to organize the biz as far as permanence?
virtual instant global entrepreneurship
a process that uses the internet to quickly create businesses with a worldwide reach
An episodic business is
a temporary business that offers services or products in a variety of locations for a brief period of time
BRIE
boundary- creating a place for your biz in location and minds resources-money, products, knowledge, etc intention-desire to start a biz exchange-moving resources/products/services in exchange for money
CSI
corporate, social, and independent - the 3 forms of entrepreneurship
entrepreneurial life cycle
emergence, existence, success, sometimes takeoff, survival, resource maturity
universalism
ethical model - there's a code of right and wrong that everyone can see and follow what if everybody did what I want to do? What kind of world would it be?
external environment
everything outside an organization's boundaries that might affect it - forces, institutions, people
high growth ventures
growth rate of 25%/year, sales over 1million, unicorns at the top of this group
main street biz
inc. biz outside high growth sector: lifestyle firms, traditional small biz, high performing small biz
drop shipping
individual sells items in person or online and maintains no inventory
Registration
info provided to the govt concerning the existence of, name of, nature of, and contact information for a business
"real options" approach
involves establishing benchmarks to achieve timetables for those achievements reflects a choice firms face to do or not do something invest now to reap later idea
lifestyle or part time firms
less than 25K sales/year, enough income to supplement but not live on, stay small, 54% of biz
caveat emptor
let the buyer beware
overall growth strategy
lifestyle or part time firms traditional small biz high performing small biz high growth venture
task environment
made up of components that a firm deals with directly such as customers, suppliers, consultants, media, interest groups
entrepreneurial ecosystem
mentors, government agencies, universities
firm
organization that sells to or trades with others, the goods or services they deal with determine the firm owner's occupation
independent small biz
owned by an individual or small group
sociocultural environments
part of the external environment made up of sectors of major forces that shape people and institutions of the task and internal environments
internal environment
people and groups within the boundary of the firm - owners, managers, employees, boarutilid members
triple bottom line
people, planet, profit
organizational culture
set of shared beliefs, common, accepted ways of dealing with problems and challenges within a company
forms
settings in which the entrepreneurial effort takes place
traditional small
smallest, schedule mandated by customer, 25-100K, generate enough income for living, 25% of biz
corporate entrepeneurship
takes place in existing businesses around new products, services, or markets
corporate entrepreneurship
takes place in existing businesses around new products, services, or markets
cannibalizing
taking business away from your employer
mutuality
the action of each person helping another
Volatility
the frequency of business starts and stops
part-time business
the owner either participates fewer than 35 hours per week or operates on a temporary or seasonal basis
opportunity drive entrepreneurship
to improve income or a product or service
aggrandizing
trying to make your biz or yourself seem more accomplished or grander than reality
multichannel marketing
using several differ
pop-up business
venue is temporary, distinct from permanent businesses, exist for a short time
moonlighting
working on your own part time after your regular job
An episodic business is
a temporary, project-based, or sporadically operating business
utilitarianism
actions resulting in the greatest good for the greatest number focus on communities' best interests in the future has strong community focus
poisoning the well
creating a negative impression among your employers' customers by using your part-time sales pitch
firm's external relations
develop a social network build legitimacy
Licensing
documented permission from the government to run one's biz
economic sector of general environment
includes trends and current conditions of the overall market for goods and services, availability of equity and credit, and employment
promotion focus
yelds better results in richer, dynamic, uncertain environments 1 of 2 internal or regulatory focus has a bias toward maximizing gains and minimizing losses