Entrepreneurship Chapter 2
Cognition
A person's way of perceiving and thinking about his or her experience.
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.
Prevention Focus
An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.
Determination Competencies
Skills identified with the energy and focus needed to bring a business into existence.
emergence stage
The first stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business.
Standard Business Practice
A business action that has been widely adopted within an industry or occupation.
Stakeholder
A person, organization, or entity that has an interest or concern in a particular business or decision.
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.
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, and pursues those functions in a professional manner.
minimalized business professionalization
A situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than in a professional way.
Key Business Functions
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.
Industry-Specific Knowledge
Activities, knowledge, and skills specific to businesses in a particular industry.
Promotion Focus
An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains.
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.
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.
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.
veteran entreprenuer
Individual who was formerly in military service who decides to become self-employed as a subsequent career. (Not to be confused with serial entrepreneur.)
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.
opportunity competencies
Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business.
Resources 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.
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.
Time management
The organizing process to help make the most efficient use of the day.
Succession
The process of intergenerational transfer of a business.
resource maturity
The resource maturity stage is the most typical fourth stage of the small business. It is characterized by relatively stable or slowly rising sales and profits over several years. In a firm that has a takeoff stage following the success stage, the resource maturity stage occurs after takeoff.
existence stage
The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances.
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.
takeoff
This stage occurs after the success stage for a small percentage of businesses. It is characterized by rapid growth (5-10 percent a month or more). When this growth levels off, the firm enters the resource maturity stage.
Habit-Based Planners
entrepreneurs who do not plan, preferring to let all actions be dictated by their routines
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.
success
the third stage of the business life cycle marked by the firm being established in its market, operation, and finances.
micro-commitment
An online action that is quick and easy to make and connects you to the message, but does not require a substantial personal or financial commitment, such a liking or favoriting a post or reposting it to your own social media account.
success stage
the third stage of the business life cycle marked by the firm being established in its market, operation, and finances.
