Chapter 3
Spiral "helical" Entrepreneurs
Alternate periods of growth and stability which are driven by personal or family needs Driven by a need to balance family and business The endgame strategy is scaling down the business
Minimalized
Entrepreneur figures that "good enough" is all that is necessary to keep the business going No systematic accounting Little recordkeeping
Second Career entrekpreneurs
Get advice Take control over life Networking Keep personal finances out of the business
Classic Profile
Loner, socially isolated Hard worker Fast learner Risk-taker seeking wealth
Discrimination of Financing
Minority applicants were denied at twice the rate of whites.
Entrepreneurial Teams
Most teams are family related More than half of teams are spouses or life partners working together
Harvest Entrepreneurs
Owners with an exit plan Work first in order to play later Build one company at a time, sell it, enjoy the proceeds, and then start another
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
How many Standard & Poor's are family owned and managed?
1/3 of the Standard & Poor's 500 are family owned and managed
Minority-owned businesses represent how much of all United States businesses.
11%
of businesses equally owned by men and women
18%
of all businesses are majority owned by women
30%
What % of US businesses are small family businesses?
39%
What is the term for the process of intergenerational transfer of a business?
Succession
Resource Competencies include...
Time, information, location, financing, raw materials, expertise
What is the best action during role conflict?
Whenever possible, make decisions based on business necessities.
Standard Business Practice
a business action that has been widely adopted within an industry or occupation
Family Business
a firm in which one family owns a majority stake and is involved in the daily management of the business
Certification
an examination base acknowledgement that the firm is owned and operated as specified
Women-owned businesses
are one of the fastest-growing sectors of all United States businesses
Lack of clear transition plan is the ..
death knell
Competencies
forms of business-related expertise
Specialized
founders or owners are passionate about one or two of the key business functions, Satisfied if other activities are no worse than other firms in the market
Set asides
government contracting funds earmarked for particular kinds of firms, such as minority- or women-owned firms
Growth Entrepreneurs
lifetime owners whose goal is major success If they top out with one business, they'll start another growth-oriented company,
Time management
organizing process to help make the most efficient use of the day List, 123 Prioritize, Delegate, Repeat, Strategize
Habitual Entrepreneurs
owners for a lifetime, sometimes in one business, sometimes across several firms No succession plan Figure to keep working until they can no longer continue
Late career entrepreneurs
people who begin their businesses after having retired or resigned from work in corporations at age 50 or older
Occasional Entrepreneurs
people who generally have another primary job Classic part-time entrepreneur Seasonal basis (doing taxes, or making Christmas wreaths)
Determination Competencies
skill 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
Majority of new businesses have a
team of two or more co-owners
Resource Competencies
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business
Professionalization
the extent to which a firm meets or exceeds the standard business practices for its industry Expert, specialized, minimalized
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
Expert Businesses
those which you notice everything seems to be done in the best way possible firm has exceeded the standard business practices of the industry
Basic Business Competency
understanding the organizational and business processes of a firm