ch 2- characteristics and competencies

5 ways to plan

1. comprehensive 2. critical-point 3. opportunistic 4. reactive 5. habit-based

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.

5 P's of Entrepreneurial Behavior

Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization

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.

Which of the following is NOT one of the "Five Ps" of entrepreneurial behavior?

Profit

rarely mentioned rewards

Recognition, admiration, power, family

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.

occasionally mentioned rewards

Wealth, product

Family

______ businesses are 58% of America's workforce

women-owned

______ businesses are one of the fastest-growing sectors of all US businesses

cognition

a person's way of perceiving and thinking about his or her experience

micro-commitment

a quick and easy online action such as liking a post

perserverence

ability to stick with it when the outcome is unknown- learned optimism

industry-specific knowledge

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

role conflict

conflict among the roles connected to two or more statuses. ex: boss and parent

intention

determination and start your business and make it a success

passion

displayed in 3 ways: 1. looking at challenges in a creative way. 2. being persistently focused on the business. 3. being absorbed by the tasks and concerns of the business

habit-based planners

don't really plan at all. actions dictated by routine

sequence of the entrepreneurial life cycle

emergence, existence, survival, success, resource maturity

Which of the following are among the universally mentioned rewards for starting a small business?

flexibility

universally mentioned rewards

flexibility, income, growth

competencies

forms of business-related expertise found in successful small businesses

existence

having the business in operation, but not yet stable in terms of markets, operations, or finances

opportunity competencies

identifying an opportunity, product, or service idea that is likely for profit, distinctive to your firm and hard for others to copy

takeoff stage

if a business embarks on a period of exceptional growth

When an entrepreneur starts a business in an industry that he or she has worked in for several years and developed considerable experience, the entrepreneur is said to have _____________.

industry-specific knowledge

comprehensive planners

long term view of planning, develop long-range plans for all aspects of business

promotion focus

maximizing gains

prevention focus

minimizing losses

expert business professionalization

most aspects of a business meet or exceed the industry's standards

Minimalized business professionalization

no aspects of a business meet or exceed the industry's standards

specialized business professionalization

one or two aspects of a business meet or exceed the industry's standards

reactive planners

passive planners. wait for cues to determine actions

critical-point planners

plan around the most important aspects first and then see if more plans are needed

What type of focus does an entrepreneur have if they are intent on minimizing losses, with a bias toward inaction or protective action?

prevention

Slack resources

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

certification

proving that the business is truly owned and operated by a woman or minority

What planning approach does an entrepreneur have if they tend to be passive, short-term focused, and lacking specific goals?

reactive

determination competencies

skills identified with the energy and focus needed to bring a business into existence

53 % of teams are ______ working together

spouses or life partners

resource maturity

stable level of sales and profit over several years

success

stage once the firm is established. shows consistently growing financial performance, usually with slowly rising sales

professionalization

successful entrepreneurs usually do the standard business practice better then average

flexibility rewards

the ability of business owners to structure life in the way that suits their needs best

basic business competency

the organizational and business processes of a firm

Most small business entrepreneurial teams are family related.

true

growth rewards

what people get from facing and beating challenges

persevration

when you keep trying without learning

income rewards

the money made by owning one's own business

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

exchange

the process of exploiting the opportunity for profit- "making sales"

succession

the process of intergenerational transfer of a business

organizational culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

emergence

the stage in which a person thinks about and takes action towards starting a firm

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

5 methods for time management

-list- all responsibilities -prioritized-based on importance and due date -delegate-tasks others can do for you -repeat-above steps a few minutes every day -strategize-look over things you didn't do this week

5 key elements to entrepreneurial culture

-passion for the mission - " for the team - " for the customer - " for innovation - " for fairness

opportunistic planners

planners that start with a goal and look for opportunities along the way. very short term