BUS 405: Chapter 2

Risk-taking

A person's tendency to tolerate and act where there is a potential risk, or where a positive outcome cannot be fully assured.

Perseverance

A type of learned optimism and one of the most powerful contributors to entrepreneurial success.

Minority-owned businesses

Account for nearly 29.3% of all U.S. businesses and had a remarkable growth rate of 27% between 2007 and 2012.

Industry-specific knowledge

Activities, knowledge, and skills specific to businesses in a particular industry.

Proactivity

An attitude describing a person's tendency to take initiative and go ahead to do something rather than wait to see what will happen or wait for someone else to do it.

Glass ceiling

An invisible barrier that prevents women from rising above certain levels in an organization.

Planning Style

Different approaches to planning: comprehensive planners take a long-term view and act on their plans, critical-point planners plan first, act on it, and then consider more planning, opportunist planners start with a goal and look to achieve it, reactive planners are passive and let the environment determine their actions, and habit-based planners do not plan, they just have a routine.

Competencies

Forms of business-related expertise possessed by entrepreneurs.

Set-asides

Government contracting funds earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.

Access problems

Most often discrimination in financing for women and underrepresented-owned small businesses.

Women-owned businesses

One of the fastest-growing sectors of all U.S. businesses, accounting for only 4.3% of national small business revenue.

Stakeholders

Persons, organizations, or entities that have an interest or concern in a particular business or decision.

Slack resources

Profits that are available to be used to satisfy the preferences of the owner in how the business is run.

Entrepreneurial Teams

Teams, often family-related, with shared trust and knowledge, working together in entrepreneurial ventures.

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.

Innovativeness

The importance of new ideas, products, services, processes, or markets in an organization.

Promotion Focus

The intent on maximizing gains and bias toward pursuing opportunities that lead to those gains.

Prevention Focus

The intent on minimizing losses and can work well in an established industry or a poor one.

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.

Glass cliffs

The practice of placing women in leadership positions that are risky or where organizations are in crisis.

Succession

The process of intergenerational transfer of a business.

Liability of newness

The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.

Organizational culture

The set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company.

Passion

The strong emotional commitment of entrepreneurs to their firm, inspiring key stakeholders like potential investors, employees, or subcontractors.

Expert business professionalization

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

Professionalization

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

Specialized business professionalization

When businesses have founders or owners who are passionate about one or two of the key business functions and professionally pursue those functions.

Minimized business professionalization

When the entrepreneur does nearly everything in the simplest way possible, rather than in a professional way.

Second career entrepreneurs

Workers who retire early and use the money to start their own business.

Veteran entrepreneurs

Workers who take generous offers to retire early, due to downsizing, and use the money to start their own business.