small business management ch2

discrimination in financing

-Minority applicants were denied at twice the rate of whites. -Asian and Hispanic owners pay higher interest rates on their loans

resource maturity

A business has demonstrated success. There is a strong chance of continued growth and success if entrepreneurial spirit can be maintained. fourth stage

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, finance, or human resources

key business functions

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.

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.

second career entrepreneurs

People who begin their businesses after having left, retired, or resigned from work. These can include veterans of the armed forces and civilians from a broad range of industries.

takeoff

Rapid growth, occurs after the success stage

business life cycle

The stages of growth and development a business can experience

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 the major functions of a firm are conducted according to the standard business practices of its industry

Minimalized business professionalization

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

industry specific knowledge

activities, knowledge, and skills specific to businesses in a particular industry

certification

an examination base acknowledgement that the firm is owned and operated and specified

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

habit-driven planners

entrepreneurs who do not plan, preferring to let all actions be dictated by their routines

opportunistic planners

entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it

reactive planners

entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take

emergence

first stage of the business life cycle, starting the business

competencies

forms of business-related expertise

existence

second stage of the business life cycle, beginning operation

liability of newness

situation that often causes new firms to falter because the people who start the firms can't adjust quickly enough to their new roles, and because the firm lacks a "track record" with customers and suppliers

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

succession

the process of inter-generational transfer of a business

success

third stage of the business life cycle, established in the market

basic business competency

understanding the organizational and business processes of a firm