Chapter 2
family business
- firm in which one family owns a majority stake and is involved in the daily management of the business
resource competencies
-ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business -time, info, location, financing, raw materials, expertise
key business functions
-activities common to all businesses -sales, operations, accounting, finance, and human resources
role conflict
-kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them -whenever possible, make decisions based on business necessities
discrimination in financing
-minority applicants were denied at twice the rate of white -asian and hispanic owners pay higher interest rates on their loan
five p's of entrepreneurial behavior
-passion -perseverance -promotion/prevention focus -planning style -professionalization
displays of passion
1. by looking at 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
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
perseverance
ability to stick with some activity even when it takes a long time , and when a successful or unsuccessful outcome is not immediately known -learned optimism
industry-specific knowledge
activities, skills, and knowledge, specific to business in an industry
standard business practice
business action that has been widely adopted within an industry or occupation
promotion focus
entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains
prevention focus
entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss
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
certification
examination base acknowledgement that the firm is owned and operated as specified
competencies
forms of business-related expertise
set asides
government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms
passion
intense positive feeling an entrepreneur has toward the business or the idea behind the business
time management
organizing process to help make the most efficient use of the day
late career entrepreneurs
people who begin their businesses after having retired or resigned from work in corporations at age 50 or older
cognition
person's way of perceiving and thinking about his or her experience
succession
process of intergenerational transfer of a business -lack of clear transition plan is the death knell
expert business professionalization
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
situation that occurs when the entrepreneur does nearly everything in the simplest way possible
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
basic business competency
understanding the organizational business processes of a firm
action
visible behavior a person takes