BUS ADM 292 - EXAM 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

RBI screen

a fast technique for making initial assessments (called screens) of prospective business ideas based on five questions

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 ($25,000-$100,000; 22%)

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 ($100,000-$1,000,000; 20%)

high-growth venture

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

license

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

target market

a marketing term that refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors

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 (ex: Russia, China)

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 (ex: Jamaica, Venezuela)

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 (ex: Germany, United States)

Small Business Administration (SBA)

a part of the U.S. government that provides support and advocacy for small businesses

royalty

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

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

cognition

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

pilot test

a preliminary run of a business sales effort, program, or website with the goal of assessing how well the overall approach works and what problems it might have

franchise

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

creativity

a process producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities

virtual instant global entrepreneurship (VIGE)

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 professionalization

a situation that occurs when all the major functions of a firm meet or exceed the standard business practices of its industry

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

minimalized business professionalization

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

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 (less than $25,000; 53%)

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

A/B testing

a way to check customer reaction to websites describing your product or service; different versions are posted and the compared results are used to make decisions

business models

a way to identify and organize key information on a business and how it achieves its goals; can be analytic tools or a way to do business

flexibility rewards

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

key business functions

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

industry-specific knowledge

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

freemium

an approach to pricing, and a business model, that connects free and premium products or services; typically a free version is offered and users have the option to pay to move up to premium features

firm

an organization that sells to or trades with others

imitative strategy

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

novelty

characterized by being different or new

imitative

characterized by being like or copying something that already exists

organizational identity

composed of the name, description, and distinctive elements of a firm (trademarks, uniforms, logos, characters, and stories)

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

feasibility study

evaluates the potential of a business opportunity by studying five primary areas in depth: the overall business idea; the product/service, the industry and market, financial projections (profitability), and the plan for future action

competencies

forms of business-related expertise

BRIE model

four elements needed to start a small business: boundary (creating place in location and in people's minds), resources (money, product, knowledge, etc.), intention (desire), exchange (goods and services to get money)

crowdfunding

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

set asides

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

income rewards

money made by owning one's own business

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

casual model of entrepreneurship

one of two approaches to thinking about entrepreneurship; you want to create a particular product or service that does not yet exist, and to achieve that end, you have to cause the product or service to exist

customer segment

part of business model; a group or subgroup of potential purchasers that can be approached in a coherent manner

pain

part of business model; any sort of problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face

gain

part of business model; can be any sort of outcome customers or potential customers would like to encounter or be able to depend on

value proposition

part of business model; small business owners' unique selling points that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition

second career entrepreneurs

people who begin their businesses after having left, retired, or resigned from work

serial entrepreneurs

people who open multiple businesses through their career

buyers

people who purchase an existing business

radical innovation strategy

rejecting existing ideas, and presenting a way to do things differently

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 a profitable and sustainable business

incremental strategy

taking an idea and offering a way to do something slightly better than it is done presently

crowdsourcing

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

resource competencies

the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business (time, information, location, financing, raw materials, expertise)

mindshare

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

passion, perseverance, promotion/prevention focus, planning style, professionalization

the five Ps of entrepreneurial behavior

independent entrepreneurship

the form of entrepreneurship in which a person or group owns a for-profit business; focus on creation, customer-focus, efficiency, and innovation

social entrepreneurship

the form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations that invest significant profits in charitable activities; focus on creation, efficiency, and customer-focus

corporate entrepreneurship

the form of entrepreneurship that takes place in existing businesses around new products, services, or markets; focus on customer-focus, efficiency, and innovation

creative destruction

the idea that newly created goods, services, or firms can hurt existing goods, services, or firms

small and medium enterprise (SME)

the international term for small business

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

conversion rate

the measure of how many visitors to your website (or people who click on your online advertisement) are actually willing to make a commitment to the product or service promoted on the site

licensee

the person or firm that is obtaining the rights to use a particular piece of intellectual property

licensor

the person or organization that is offering the rights to use a particular piece of intellectual property

succession

the process of intergenerational transfer of a business; lack of clear transition plan is the death knell

basic business competency

understanding the organizational and business processes of a firm

bootstrapping

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

growth rewards

what people get from facing and beating challenges