BUS Chapter 2
Aspects of an entrepreneur's behavior, their way of looking at and thinking about themselves and their world is called ______, visible in their _____.
(1) cognition (2) actions
cognition
A person's way of perceiving and thinking about his or her experience.
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.
Pros of family business
(1) A strong unit can be effective with quick decision-making. (2) Families are a source of funds and personnel. (3) They also tend to raise future entrepreneurs.
Two challenges of family business are ____ ______ and _____ _______.
(1) role conflict (2) time management
Both ________ and ___________ face access issues, most often in financing
(1) women (2) minorities
prevention focus
An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.
________ is when a person takes steps to start a business
Emergence
_____ _______ are the money made from owning your own business
income rewards
Comprehensive planners
take a long-term view and act on their plans
A basic method of _____ _________ is to make a list, prioritize that list, then delegate tasks - repeat daily and strategize weekly
time management
________ are motivated more by flexibility
women
stakeholder
A person, organization, or entity that has an interest or concern in a particular business or decision.
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, and pursues those functions in a professional manner.
key business functions
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.
Industry-specific knowledge
Activities, knowledge, and skills specific to businesses in a particular industry.
certification
An examination-based acknowledgment that the firm is owned and operated as specified.
habit-based planners
Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines.
________ _______ are perhaps the most rapidly growing type of reward
Flexibility rewards
competencies
Forms of business-related expertise.
The Five Ps of Entrepreneurial Behavior
Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization
__________ is best thought of as a type of learned optimism and one of the most powerful contributors to entrepreneurial success
Perseverance
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.
Team should have passion for:
The mission The team Innovation Fairness
______________ businesses are a large sector of U.S. firms, yet they account for only 4.3% of national small business revenue
Women-owned
Reactive planners
are passive, the environment determines actions. (generally do poorly in business)
Successful entrepreneurial __________ leads to the creation of a new firm that meets the goals of the entrepreneur.
behavior
A firm's growth is predictable, as in a _______ _____ ______
business life cycle
______ proves the firm is minority or women-owned
certification
Successful entrepreneurs exhibit business-related expertise, called .....
competencies
_________ a family council, gather an advisory board, or a formal board of directors for advice
create
Intention reflects determination, or ______ ______, shown through focus and choices
determination competencies
Firms with a majority family ownership are a ______ ______ and they employ 58% of America's total workforce.
family business
Most teams are...
family related
The _______ ____ _______ is an issue at the existence stage
liability of newness
_________ are motivated more by money
men
_________ choose construction and financial industries, with higher sales.
men
_____________ firms has also grown explosively. • Public and private initiatives have helped level the field.
minority-owned
Expert business professionalization
occurs when most aspects of the business meet or exceed the industry's standard.
The ______ ______ stage may include micro-commitments
resource maturity
The ______ stage occurs once the firm is established in its market
success
Lack of a clear _________ plan could end a family business
succession
family business
A firm in which one family owns a majority stake and is involved in the daily management of the business.
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.
passion
An intense positive feeling an entrepreneur has toward the business or the idea behind the business.
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.
________ finds the firm in operation, but not yet stable
Existence
There are three levels or professionalization:
Expert business professionalization Specialized business professionalization Minimalized business professionalization
action
The visible behavior a person takes.
Loss of _________ is another challenge
confidence
Minimalized business professionalization
occurs when none of the aspects of the industry standard appear in the business
Specialized business professionalization
occurs when one or two aspects of the business are at this level.
Exchange, or 'making sales,' uses ______ ______.
opportunity competencies
Pick good team members for a strong _______ _______
organizational culture
An entrepreneur's _______ increases their commitment to the firm
passion
A second challenge is keeping _________ ________ out of the business
personal finances
There are literally hundreds of ways to think about entrepreneurial ___________
personalities
Critical-point planners
plan first, act on it, then consider more planning.
A _______ _______ is intent on minimizing losses. Can work well in an established industry or a poor one. Successful entrepreneurs balance the two focuses.
prevention focus
A ________ ______ is intent on maximizing gains. Yields results in richer, dynamic, environments or industries
promotion focus
Resources lead to specific ______ ______, or the ability to procure raw materials
resource competencies
Reduce _____ ______ by keeping family issues out of the business
role conflict
A special group of entrepreneurs are ________ _______ entrepreneurs
second career entrepreneurs
_________ from big companies and the government help solve issues women and minorities face
set-asides
An entrepreneur's passion inspires key _____________ like potential investors or employees
stakeholders
Every industry has an average called a
standard business practice
Opportunistic planners
start with a goal and look to achieve it.
_________ choose service industries with lower sales levels
women
When assembling a team.....
work out key issues ahead of time
Passion is displayed in three ways:
1. by looking at the challenges of the business in a creative way 2. by being persistently focused on the business 3. by being absorbed by the tasks and concerns of the business
promotion focus
An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains.
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.
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.
_______ _______ come from facing and beating or learning from challenges
Growth rewards
veteran entrepreneur
Individual who was formerly in military service who decides to become self-employed as a subsequent career. (Not to be confused with serial entrepreneur.)
second career entrepreneur
Person who begins a business after having left, retired, or resigned from work. Can include veterans of the armed forces and civilians from a broad range of industries.
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.
_____ ________ can be put back into the firm if needed at the success stage
Slack resources
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 behavior of continued effort to achieve a goal.
Perseveration
The danger is to keep trying the same action repeatedly without learning (problem behavior)
professionalization
The extent to which a firm meets or exceeds the standard business practices for its industry.
entrepreneurial mindset
The motivations, cognitions, attitudes, aptitudes, and behaviors that lead to a propensity to create solutions to problems or seek opportunities to do something new or better.
time management
The organizing process to help make the most efficient use of the day.
succession
The process of intergenerational transfer of a business.
business life cycle
The sequence or pattern of developmental stages any business goes through during its life span.
Habit-based planners
do not really plan, they just have a routine. (generally do poorly in business)
A particular challenge is the difficulty of the __________ approach.
do-it-yourself
There is no one pattern of ....
entrepreneurial behavior or entrepreneurial type
One other approach to thinking about the entrepreneurial personality is the idea of the...
entrepreneurial mindset
There is also ______________ knowledge that uses a particular kind of skill
industry-specific (ex. mechanic, cook)
The _______ stage occurs if the firm has a period of exceptional growth
takeoff
________ want less risk, which are also the firms with lower returns
women
standard business practice
A business action that has been widely adopted within an industry or occupation.
minimalized business professionalization
A situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than in a professional way.
The BRIE model's boundary uses ___ ______ ______ to create the boundary
key business functions