BUS ADM 292 - EXAM 1
standard business practice
a business action that has been widely adopted within an industry or occupation
independent small business
a business owned by an individual or small group
owner-managed firm
a business run by the individual who owns it
RBI screen
a fast technique for making initial assessments (called screens) of prospective business ideas based on five questions
traditional small business
a firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market ($25,000-$100,000; 22%)
high-performing small business
a firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business ($100,000-$1,000,000; 20%)
high-growth venture
a firm started with the intent of eventually going public, following the pattern of growth and operations of a big business
license
a legal agreement granting you rights to use a particular piece of intellectual property
target market
a marketing term that refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors
efficiency-driven economy
a nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity is a major goal (ex: Russia, China)
factor-driven economy
a nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production (ex: Jamaica, Venezuela)
innovation-driven economy
a nation where the major forces for jobs, revenues, and taxes come from high-value-added production based on new ideas and technologies and from professional services based on higher education (ex: Germany, United States)
Small Business Administration (SBA)
a part of the U.S. government that provides support and advocacy for small businesses
royalty
a payment to a licensor based on the number or value of licensed items sold
heir
a person who becomes an owner through inheriting or being given a stake in a family business
serial entrepreneur
a person who opens multiple businesses throughout his or her career
cognition
a person's way of perceiving and thinking about his or her experience
pilot test
a preliminary run of a business sales effort, program, or website with the goal of assessing how well the overall approach works and what problems it might have
franchise
a prepackaged business bought, rented, or leased from a company
creativity
a process producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities
virtual instant global entrepreneurship (VIGE)
a process that uses the internet to quickly create businesses with a worldwide reach
organizational culture
a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done
expert business professionalization
a situation that occurs when all the major functions of a firm meet or exceed 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
lifestyle or part-time firm
a small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner's schedule and way of working (less than $25,000; 53%)
corridor principle
a theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity (which is like going down a corridor) you will encounter other opportunities
A/B testing
a way to check customer reaction to websites describing your product or service; different versions are posted and the compared results are used to make decisions
business models
a way to identify and organize key information on a business and how it achieves its goals; can be analytic tools or a way to do business
flexibility rewards
ability of business owners to structure life in the way that suits their needs
key business functions
activities common to all businesses; sales, operations, accounting, finance, and human resources
industry-specific knowledge
activities, skills, and knowledge, specific to businesses in an industry
freemium
an approach to pricing, and a business model, that connects free and premium products or services; typically a free version is offered and users have the option to pay to move up to premium features
firm
an organization that sells to or trades with others
imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
novelty
characterized by being different or new
imitative
characterized by being like or copying something that already exists
organizational identity
composed of the name, description, and distinctive elements of a firm (trademarks, uniforms, logos, characters, and stories)
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
feasibility study
evaluates the potential of a business opportunity by studying five primary areas in depth: the overall business idea; the product/service, the industry and market, financial projections (profitability), and the plan for future action
competencies
forms of business-related expertise
BRIE model
four elements needed to start a small business: boundary (creating place in location and in people's minds), resources (money, product, knowledge, etc.), intention (desire), exchange (goods and services to get money)
crowdfunding
funding a business online through the collective involvement of others who provide donations, loans, or investments
set asides
government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms
income rewards
money made by owning one's own business
overall growth strategy
one of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm
casual model of entrepreneurship
one of two approaches to thinking about entrepreneurship; you want to create a particular product or service that does not yet exist, and to achieve that end, you have to cause the product or service to exist
customer segment
part of business model; a group or subgroup of potential purchasers that can be approached in a coherent manner
pain
part of business model; any sort of problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face
gain
part of business model; can be any sort of outcome customers or potential customers would like to encounter or be able to depend on
value proposition
part of business model; small business owners' unique selling points that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition
second career entrepreneurs
people who begin their businesses after having left, retired, or resigned from work
serial entrepreneurs
people who open multiple businesses through their career
buyers
people who purchase an existing business
radical innovation strategy
rejecting existing ideas, and presenting a way to do things differently
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
incremental strategy
taking an idea and offering a way to do something slightly better than it is done presently
crowdsourcing
techniques often based on internet services to get opinions or ideas through the collective involvement of others
resource competencies
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business (time, information, location, financing, raw materials, expertise)
mindshare
the degree of attention your target market pays to your idea or organization
passion, perseverance, promotion/prevention focus, planning style, professionalization
the five Ps of entrepreneurial behavior
independent entrepreneurship
the form of entrepreneurship in which a person or group owns a for-profit business; focus on creation, customer-focus, efficiency, and innovation
social entrepreneurship
the form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations that invest significant profits in charitable activities; focus on creation, efficiency, and customer-focus
corporate entrepreneurship
the form of entrepreneurship that takes place in existing businesses around new products, services, or markets; focus on customer-focus, efficiency, and innovation
creative destruction
the idea that newly created goods, services, or firms can hurt existing goods, services, or firms
small and medium enterprise (SME)
the international term for small business
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
conversion rate
the measure of how many visitors to your website (or people who click on your online advertisement) are actually willing to make a commitment to the product or service promoted on the site
licensee
the person or firm that is obtaining the rights to use a particular piece of intellectual property
licensor
the person or organization that is offering the rights to use a particular piece of intellectual property
succession
the process of intergenerational transfer of a business; lack of clear transition plan is the death knell
basic business competency
understanding the organizational and business processes of a firm
bootstrapping
using low-cost or free techniques to minimize your cost of doing business
growth rewards
what people get from facing and beating challenges