Business Exam 1
BRIE model
4 components that can help us understand succesful small businesses, these include boundary, resources, intention, exchange
general environment
A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the political sector
magnify (or modify SCAMPER)
Taking an existing product and changing its appearance or adding more features
SCAMPER
a creativity tool that provides cues to trigger new ideas for your business
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
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
task environment
a part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, and interest groups
heir
a person who becomes an owner through inheriting or being given a stake in a family business
franchise
a prepackaged business bought, rented, or leased from a company called a franchisor
entrepreneurial alertness
a special set of observational and thinking skills that help entrepreneurs identify good opportunities
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 business
adapt (SCAMPER)
adaptation form existing products or services
imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
having enough money in case business goes bankrupt
challenges for a second career entrepreneur
social capital
characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur
other people's money, marketing, effectiveness
characteristics of a high-growth venture business
owner's own money, sales, efficiency
characteristics of a small business
organizational identity
composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories (Part of Boundary in BRIE model)
lack of family interest, conflict between family members, lack of structure
cons of a family business
boundary (BRIE)
creating a place for your business - in location and in people's minds
feasibility study
determining if an idea is realistic
social entrepreneurship
form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities
corporate entrepreneurship
form of entrepreneurship which takes place in existing businesses around new products, services, or markets, focuses on customer focus and innovation
5%
growth rates for high-growth venture business
20%
growth rates for high-performing small business
exchange (BRIE)
moving resources/products/services in exchange for money
time management
organizing process to help make the most efficient use of the day
royalty
payment based on the number or value of license items sold
second career entrepreneur
people who begin their businesses after having left, retired, or resigned form work
founder
people who create or start new businesses
combine (SCAMPER)
possible combinations that result in something completely different
stability, commitment, flexibility
pros of a family business
$1,000,000 and up
range of sales for high-growth venture business
$100,000 to $999,999
range of sales for high-performing small business
radical innovation strategy
rejecting existing ideas, and presenting a way to do things differently
eliminate (SCAMPER)
search for opportunities that arise when you get rid of something or stop doing something
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
licensor
someone that issues a license
incremental strategy
taking an idea and offering a way to do something slightly better than it is done presently
resource competencies
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business
intention (BRIE)
the desire to start a business
external environment
the forces, institutions and people outside the boundary of the firm
licensee
the holder of a license
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
resources (BRIE)
the money, product, knowledge that make up the business
internal environment
the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm
succession
the process of intergenerational transfer of a business, challenge could be deciding which child gets business
put to other uses (SCAMPER)
think of ways you could generate a high number of opportunities for your product or service
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
substitute (SCAMPER)
what might substitute for something else to form an idea
service business
which industry do women typically choose