BA Chapter 3

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, finance, or human resources.

Minimalized Business Professionalization

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

Professionalization

The extent to which a firm meets or exceeds the standard business practices for its industry.

Late Career Entrepreneurs

(aka Second Career Entrepreneurs) People who begin their businesses after having retired or resigned from work in corporations at age 50 or later.

Standard Business Practice

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

Family Business

A firm in which one family owns a majority stake and is involved in the daily management of the business.

Career

A lifelong series of jobs or occupations.

Key Business Functions

Activities common to all businesses such as sales, operations, accounting, finance, and human resources.

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.

Competencies

Forms of business-related expertise.

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.

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.

Time Management

The organizing process to help make the most efficient use of the day.

Succession

The process of intergenerational transfer of a business.