ENTREP CHAPTER 2

Role conflict

- describes the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and each makes different demands on them.

Industry-specific knowledge

Activities, knowledge, and skills specific to businesses in a particular industry.

Entrepreneurial Operational Competencies

All the aspects of the entrepreneurial personality depend on hard work, but there are other specific types of business-related expertise— called competencies—that appear repeatedly in successful entrepreneurs around the world.

THE SOCIOLOGY OF ENTREPRENEURS

Entrepreneurs can be as strongly affected by their social or sociological characteristics as by their personality characteristics. These sociological characteristics relate to the social groups to which they belong. Family, gender, race, nationality, religion, age, and other types of group memberships, such as being a member of a team or a veteran, are typical examples.

Comprehensive planners Critical-point planners Oportunistic planners Reactive planners Habit based planners

Five ways to plan

Professionalization

One hallmark of successful entrepreneurs is that they usually do at least one thing much better than average. That average is called a standard business practice and every industry has them. Doing that level or better is what professionalization is all about

Second career entrepreneur

Second Career Entrepreneurs - a special group of entrepreneurs are called second career entrepreneurs—people who begin their businesses after having left, retired, or resigned from work. - for some Filipinos, retiring early to become an entrepreneur can help them get rich. However, it takes more than business acumen to succeed

Takeoff

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

Passion

an intense positive feeling the entrepreneur has toward the business or even the idea behind the business. It comes from being actively involved in moving the business forward.

Reactive planners

are completely passive, waiting for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts

Key business functons activities

common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.

Habit-based planners

do not really plan at all because their actions are dictated by their routines. They do today what they did yesterday. They don't plan, and they don't even tend to react to changes in their environments

Oportunistic planners

generally start with a goal and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation

Comprehensive planners

take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they've developed

1. List 2. 123 Prioritize 3. Delegate 4. Repeat 5. Strategize

techniques for time management, which can help meet the challenges of schedule overload.

Expert business professionalization

when most aspects of the business meet or exceed the industry's standards

minimalized business professionalization

when none of the aspects of the business achieve the industry standard.

Specialized business professionalization

when one or two aspects of the business are at this level

Succession

when the current owners are ready to think about what follows them, we get into succession — the process of intergenerational transfer of a business.

• There are a variety of approaches to thinking about the specifics, but in the end, there are five key elements:

• Passion for the Mission • Passion for the Team • Passion for the Customer • Passion for Innovation • Passion for Fairness

Promotion

- Prevention Focus: Most of us have some mix of two internal focuses (also called our regulatory focus), a promotion focus intent on maximizing gains, which gives us a bias toward pursuing opportunities likely to lead to those gains, and a prevention focus intent on minimizing losses, with a bias toward inaction or protective action. Being a successful entrepreneur involves balancing the two focuses

Entrepreneurial teams

- The majority of new businesses have a team of two or more co-owners, and the trend is toward even more businesses being developed by teams of entrepreneurs. - When family members start a business, they start with already knowing and trusting each other. - Teams are also likely to have more money, time, and expertise to put into a business.

Expert business professionalization Specialized business professionalization Minimalized business professionalization

- there are three levels of professionalization:

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.

Emergence Existence Success Resource maturity Takeoff

The Entrepreneurial Life Cycle

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.

Emergence

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

Resource maturity

The resource maturity stage is the most typical fourth stage of the small business. - It is characterized by relatively stable or slowly rising sales and profits over several years

Success

The third stage of the business life cycle marked by the firm being established in its market, operation, and finances. - Slack resources.

entrepreneurial culture.

There is a special case of organizational culture for start-ups,

Planning style

Walang meaning pero may five ways to plan

Family businesses

are firm in which one family owns a majority stake and is involved in the daily management of the business. - E.g. SM Investments Corp. is owned by the family of the country's richest family, the Sy Sibings., while Ayala Corp. is led by the Zobel family. - Small, family-owned businesses have many advantages. If the business is managed at the top by a group of tight-knit family members, communication-based integration can be more effective and decision making can be easier and quicker.

Perseverance

is best thought of as a type of learned optimism, the ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known.

Critical-point planners

plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning