BUS 165 Test 1

Standard business practice

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

Independent small business

a business owned by an individual or small group

Owner-managed firm

a business run by the individual who owns it

Family business

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

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 and market

Efficiency-driven economy

a nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity (i.e., efficiency) is a major goal.

Factor-driven economy

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

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

Small Business Administration

a part of the US government that provides support and advocacy for small businesses

Task environment

a part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, etc.

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 businesses throughout his or her career

Entrepreneur

a person who owns or starts an organization, such as a business

Corridor principle

a theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity you will encounter other opportunities

CSI entrepreneurship

acronym for the three forms of entrepreneurship: corporate, social, and independent

Key business functions

activities common to all businesses such as sales, operations (aka production), accounting, finance, and HR

Industry-specific knowledge

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

Sustainable entrepreneurship

an approach to operating a firm or a line of business that 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

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

Certification

an examination-based 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

Firm

an organization that sells to or trades with others

Green entrepreneurship

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

Novelty

characterized by being different or new

Imitative

characterized by being like or copying something that already exists

Necessity-driven entrepreneurship

creating a firm as an alternative to unemployment

Opportunity-driven entrepreneurship

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

Four focuses of entrepreneurship

creation, customers, efficiency, and innovation

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-based 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

Set-asides

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

Small business

involves 1-50 people and has its owner managing the business on a day-to-day basis

Social entrepreneurship

involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations that invest significant profits in charitable activities

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

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

Opportunity competencies

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

Corporate entrepreneurship

takes place in existing businesses around new products, services, or markets

Crowdsourcing

techniques often based on Internet services to get opinions or ideas through the collecting involvement of others

Flexibility rewards

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

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

Perseverance

the ability to stick with some activity even when it takes a long time and its outcome is not immediately known

Perseverance

the behavior of continued effort to achieve a goal

Mindshare

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

Innovation

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

Creation

the entrepreneurial focus that looks at the making of new entities

Customer-focus

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

Efficiency

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

Professionalization

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

Emergence

the first stage of the small business cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business

External Environment

the forces, institutions, and people outside the boundary of the firm

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

Existence

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

Business life cycle

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

Self-employed

working for yourself

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

Self-efficacy

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

Cognition

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

Main street business

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, and are the opposite of big business or "Wall Street" businesses

Franchise

a prepackaged business bought, rented, or leased from a company called a franchisor

Virtual instant global entrepreneurship

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

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

Expert business professionalism

a situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry

Specialized business professionalism

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 professionalism

a situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than in a professional way

Lifestyle or part-time firm

a small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner, most often through operations that fit the owner's schedule and way of working

Overall growth strategy

one of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm

Organizational identity

part of the BRIE model; composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters, and stories

Founders

people who create or start new businesses

Buyers

people who purchase an existing business

Slack resources

profits that are available to be used to satisfy the preferences of the owner in how the business is run

Independent entrepreneurship

the form of entrepreneurship in which a person or group owns a for-profit business

E-commerce

the general term for conducting business on the Internet

Small and medium enterprise (SME)

the international term for small business

Trade magazines

the magazines that target specific industries and professions

Income rewards

the money made by owning one's own business

Unicorn

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

Resource maturity

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

Time management

the organizing process to help make the most efficient use of the day

Internal Environment

the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

Succession

the process of intergenerational transfer of a business

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

Forms of entrepreneurship

the settings in which the entrepreneurial effort takes place

Takeoff

the stage occurs after the success stage for a small percentage of businesses. It is characterized by rapid growth (5-10% a month or more). When this growth levels off, the firm enters the resource maturity stage

Environment

the sum of all the forces outside the firm or entrepreneur

Goods or services

the tangible things (goods) or intangible commodities (services) created for sale

Success

the third stage of the business life cycle marked by the firm being established in its market, operation, and finances

Occupations

the type of activity a person does regularly for pay

Action

the visible behavior a person takes

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

Growth rewards

what people get from facing and beating challenges