BM133 Introduction to Small Business Management - Ch 2

promotion focus

An entrepreneur's attention to max-imizing gains and pursuing opportunities likely to lead to gains

prevention focus

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

passion

An intense positive feeling an entrepreneur has toward the business or the idea behind the business. One of the Five P's of Entrepreneurial Behavior

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

takeoff

For a small percentage of businesses, this occurs after the success stage; it is characterized by quick growth. When this stops, the business has reached the stage: resource maturity

Five P's

The Five P's of Entrepreneurial Behavior: passion, perseverance, promotion focus; prevention focus; planning style

perseverance

The ability to stick with some activity even when it take a long time and its outcome is not immediately known. One of the Five P's of Entrepreneurial Behavior

Business life cycle

The stages of growth and development a business can experience. 1. Emergence; 2. Existence; 3. Success; 4. Resource maturity

Standard business practice

a business action that has been widely adopted within an industry or occupation; expected normal business practices for an industry

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

Specialized business professionalization

a situation that occurs when businesses have founders or owners who are passionate about one of two of the key business functions, such as sales, operations, accounting, finance, or human resources.

industry-specific knowledge

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

planning styles

comprehensive; critical-point; opportunistic; reactive; habit-based

Professionalization

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