Raven's Test

key business functions

-activities common to all businesses -sales, operations, accounting, finance, and human resources

Rearrange (or reverse)

-magnetic poetry example -idea trigger: what can you rearrange or reorder in the way your product or service appears?

Magnify (or Modify)

-taking an existing product and changing its appearance or adding more features -can also cue you to minimize something -idea trigger: what could i make more noticeable or dramatic, or different in some way from my competitors?

Handling a Crisis

1. Admit you're in trouble - quickly 2. Get to the scene as soon as possible 3. Communicate facts you know 4. Have one person serve as the firm's spokesperson 5. Separate crisis management from the everyday management of the firm 6. Deal with the crisis quickly

Independent Small Business

A business owned by an individual or small group

CSI entrepreneurship

Acronym for the three forms of entrepreneurship, corporate, social, and independent

5 P's of Entrepreneurial Behavior

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

Small and Medium Enterprises

The international term for small businesses

Income Rewards

The money made by owning one's own business

Psychology of Entrepreneurs

cognition and action

Owner Managed Firm

A business run by the individual who owns it

Traditional Small Business

A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry & market

High-Performing Small Business

A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business

High-Growth Venture

A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business

Efficiency-Driven Ecnonomy

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.

Factor-Driven Economy

A nation where the major forces for jobs, revenues, and taxes come from farming or extraction industries like forestry, mining, or oil production

Small Business Administration (SBA)

A part of the US gov that provides support and advocacy for small business

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 demographic sector

Heir

A person who becomes an owner through inheriting or being given a stake in a family business

Serial Entrepreneur

A person who opens multiple business throughout his or her career

Franchise

A prepackaged business bough, rented, or leased from a company called a franchiser

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 businesses. The components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations.

corridor principle

A theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity (which is like going down a corridor) you will encounter other opportunities.

promotion focus

An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains

prevention focus

An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.

green entrepreneurship

Another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields

Crowdfunding

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

caveat emptor

Latin term for "buyer beware" to put the burden for consumer protection onto the customer

Founders

People who create or start new businesses

Buyers

People who purchase an existing business

Crowdsourcing

Techniques often based on internet-based services to get opinions or ideas through the collective involvement of others

Flexibility Rewards

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

Unicorn

The most successful high-growth ventures, those with a valuation of $1 billion or more

Business life cycle

The sequence or pattern of developmental stages any business goes through during its life span.

Bootstrapping

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

Growth Rewards

What people get from facing and beating challenges

Self Employed

Working for yourself

Standard business practice

a business action that has been widely adopted within an industry or occupation

SCAMPER

a creativity tool that provides cues to trigger breakthrough thinking substitute, combine, adapt, magnify or modify, put to other uses, eliminate, rearrange

family business

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

license

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

adapt

adaptation from existing products or services

sustainable entrepreneurship

an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment

Effectuation

an approach used to create alternatives in uncertain environments

Certification

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

passion

an intense positive feeling an entrepreneur has toward the business or the idea behind the business

Necessity-driven entrepreneurship

creating a firm as an alternative to unemployment

Mindshare

degree of attention to which your target market pays to your idea or organization

innovation

entrepreneurial focus that looks at a new thing or a new way of doing things

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

Habit-driven planners

entrepreneurs who do not plan, preferring to let all actions be dictated by their routines

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

Making an ethical decision

ethics, ethical dilemma, caveat emptor, golden rule, utilitarianism, universalism, billboard principle, BATNA

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

e-commerce

general term for conducting business on the internet

set aside

government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms

Achieving Sustainability

identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes green entrepreneurship

5 Competencies

key business functions, industry-specific knowledge, resource, determination, opportunity,

combine

possible combinations that result in something completely different

eliminate

search for opportunities that arise when you get rid of something or stop doing something

BATNA BEST ALTERNATIVE TO A NEGOTIATED SETTLEMENT

second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiaiton

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

preseverance

the behavior of continued effort to achieve a goal

Legitimacy

the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors based on people, product, or organization

developing a social network

the entrepreneur's set of relationships and contacts with individuals and institutions way to work trust, reciprocity, and long-term relationships into your day-to-day business operations.

Efficiency

the entrepreneurial focus that refers to doing the most work with the fewest resources

creation

the entrepreneurial focus which looks at the making of new entities

substitute

what might substitute for something else to form an idea

Women and Minorities

women-owned businesses are one of the fastest-growing sectors of all united states businesses

cognition

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

industry-specific knowledge

activities, skills, and knowledge, specific to businesses in an industry

billboard people

asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see

Opportunity-driven entrepreneurship

creating a firm to improve one's income or a product or service

opportunity competencies

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

Universalism

suggests that there is a code of right and wrong that everyone can see and follow

Golden Rule

suggests you treat others in the manner you wish to be treated

Utilitarianism

supports seeking the greatest good for the greatest number of people

action

the visible behavior a person takes

Main Street Businesses

A popular term for small businesses reflecting the idea that these are the kinds of firms you would expect to find on the main street of a typical American city; the opposite of big business or "Wall Street" business

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

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

virtual instant global entrepreneurship

a process that uses the internet to quickly create businesses with a worldwide reach

ethical dilemma

a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do

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

Minimalized business professionalization

a situation that occurs when the entrepreneur does nearly everything in the simplest way possible

Ethics

a system of values that people consider in determining whether actions are right or wrong

perseverance

ability to stick with some activity even when it takes a lone time, and when a successful or unsuccessful outcome is not immediately known

BRIE Model

boundary- creating a place for your business- in location and in people's minds resources- the money, product, knowledge, etc.., that make up the business intention- the desire to start a business exchange- moving resources/products/ services in exchange for money

5 skills for managing relations with the environment

building legitimacy, developing a social network, handling a crisis, achieving sustainability, and making ethical decisions

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

planning style

comprehensive planners, critical-point planners, opportunistic planners, reactive planners, habit-driven planners

Customer Focus

the entrepreneurial focus which refers to being in tune with one's market

Professionalization

the extent to which a firm meets or exceeds the standard business practices for its industry

Corporate Entrepreneurship

the form of entrepreneurship which takes place in existing businesses around new products, services, or markets

four focuses of entrepreneurship

the key directions the organization intends to pursue. The four focuses are creation (of new entities), customers, efficiency, and innovation (new products, services, or processes)

Put to other uses

think of ways you could generate a high number of opportunities for your product or service