Entrepreneurship Exam 1

4 types of firm growth strategies

-lifestyle or part time firms -Traditional small businesses - High-performing small businesses -High-Growth ventures

5 P's of Entrepreneurial Behavior

1. Passion 2. Perseverance 3. Promotion/Prevention Focus 4. Planning Style 5. Professionalization

5 factors that can lead small business owners to their business ideas

1. Work/personal experience .2. A similar business. 3. Chance - retail arbitrage. 4. Family and friends. 5. Education or expertise. 6. Magazines. 7. Idea sites. 8. Side gigs. 9. Make and sell, locally or online. 10. Going online to spot trends.

Steps in ethical decision making

1.Define the moral problem 2. Generate alternatives that could meet the ethical, legal, and economic goals every business must balance 3. Implement- pick the best alternative you and your business can live with and implement it.

license

A legal agreement granting you rights to use a particular piece of intellectual property.

royalty

A payment to a licensor based on the number or value of licensed items sold.

self-efficacy

A person's belief in his or her ability to achieve a goal

Stakeholders

A person, organization, or entity that has an interest or concern in a particular business or decision.

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; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities.

key business functions

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.

Universalism

An ethical model that suggests that there is a code of right and wrong that everyone can see and follow.

Utilitarianism

An ethical model that supports seeking the greatest good for the greatest number of people.

Imitative strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing.

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.

crowd funding

Funding a business online through the collective involvement of others who provide donations, loans, or investments.

ISO

International Organization for Standardization and refers to certification for having met a standard of quality that is consistently evaluated around the world

Founders

People who create or start new businesses

radical innovation strategy

Rejecting existing ideas, and presenting a way to do things differently.

opportunity recognition

Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.

external relations

The general description for the processes and skills used in the management of a firm's interactions with people, organizations, and institutions outside of its boundary.

creative destruction

The way that newly created goods, services, or firms can hurt existing goods, services, or firms.

Bootstrapping

Using low-cost or free techniques to minimize your cost of doing business.

independent small business

a business owned by an individua; or small group.

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

Baldrige Award

is given by the U.S. government to businesses and nonprofit organizations that have been judged outstanding in seven measures of quality leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results.

Mutuality

is the idea and action of each person helping the other

caveat emptor

let the buyer beware, businesses to put the burden for consumer protection onto the customer

Innovativeness

refers to how important a role new ideas, products, services, processes, or markets play in an organization

determination competencies

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

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

feasibility

the extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market, and regulatory environment) forces that could affect your business.

small and medium enterprises

the international term for small businesses