Entrepreneurship Chapter 3

family business

a firm in which one family owns a majority stake and is involved in the daily management of the business

key business functions

activities common to all businesses such as sales, operations, accounting, financing, and human resources -boundary

industry-specific knowledge

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

certification

an examination based on acknowledgement that the firm is owned and operated as specified

competencies

form 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

professionalization

refers to the extent to which a firm meets or exceeds the standard business practices for the industry -3 levels of professionalization

minimalized professionalization

situation where the entrepreneur does nearly everything in the simplest way possible -"good enough" attitude

determination competencies

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

opportunity competencies

skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business -exchange

resource competencies

the ability or skill of the entrepreneur at finding expendable components necessary to the operations of the business such as time, information, location, financing, raw materials, and expertise -resources

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

specialized professionalization

the owner is passionate about one key business function, but is satisfied if the other activities are no worse than other businesses in the market

succession

the process of intergenerational transfer of a business

expert professionalization

those in which you notice everything seems to be done the best way possible