Entrepreneurship E1 P1 (1-4)

RBI Screen

"Really Big Idea" - A fast technique for making initial assessments of prospective business ideas based on five qustions

4 Key Ideas to starting a small business

- Believe that you can do this - Planning + Action = Success -Help Helps -Do well. Do good.

5 questions for screening

- People: Who are you? - Offering: What are you offering? - Customer: Whom are you offering it to? - Value Proposition: Why do they care? - Distinctive competencies: Do you have any key or core science?

5 skills for managing relations with the environment

- building legitimacy - developing a social network - handling a crisis - achieving sustainability - making ethical decisions

resource maturity

A business has demonstrated success. There is a strong chance of continued growth and success if entrepreneurial spirit can be maintained.

ISO 14001 Certification

A certification awarded to organizations for creating and implementing an environmental management system that meets the requirement of the International Standards Organization.

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.

Customer segment

A group or subgroup of potential purchasers that can be approached in a coherent manner.

License

A legal document stating that the holder has permission from the proper authorities to carry on a certain trade or profession

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.

General Environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

Task Environment

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like.

Heir

A person who becomes an owner through inheriting or being given a stake in a family business

Entrepreneur

A person who owns and runs their own business and takes risks.

Main street business

A popular term for small businesses reflecting the idea that these are the kinds of firms you would expect to find on the main street of a typical American city, and are the opposite of big businesses or "Wall Street" businesses.

Franchise

A prepacked business bought, rented, or leased from a company called a franchisor

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

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.

entrepreneurial alertness

A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities.

Promotion focus

An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains

prevention focus

An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.

Firm

An organization that sells to or trades with others

BRIE

Boundary Resources Intention Exchange

Boundry

Creating a place for your business

The entrepreneurial process

Feel - Check - Plan - Do

Corwdfunding

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

caveat emptor

Latin term for "buyer beware"

5 P's of Entrepreneurial Behavior

Passion Perseverance Promotion/Prevention focus Planning style Professionalization

Baldridge National Quality Award

Recognition conferred annually by the Baldridge National Quality Program to U.S. organizations demonstrating performance excellence, including healthcare orgs

Crowdsourcing

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

external relations

The general description for the processes and skills used in the management of a firm's interactions with people, organizations and institutions outside of its boundary.

liability of newness

The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.

independent small business

a business owned by an individual or small group

Owner-managed firms

a business run by the individual who owns it

SCAMPER

a creativity tool that provides cues to trigger breakthrough thinking Substitute Combine Adapt Magnify or Modify Put to Other Uses Eliminate Rearrange

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

High-growth venture

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

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

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

Self-Efficacy

a person's belief in his or her ability to achieve a goal

Virtual Instant Global Entrepreneurship (VIGE)

a process that uses the internet to quickly create businesses with a worldwide reach - ebay or Upwork to quickly establish a global presence

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

effectuation

an approach used to create alternatives in uncertain environments

Passion

an intense positive feeling an entrepreneur has toward the business or the idea behind the business

social capital

characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur

Novelty

characterized by being different or new

Imitative

characterized by being like or copying something that already exists

Necessity-driven entrepreneurship

creating a firm as an alternative to unemployment

Opportunity-driven entrepreneurship

creating a firm to improve one's income or a product or service

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

Independent Entrepreneurship

form of entrepreneurship in which a person or group own their own for-profit business

competencies

forms of business-related expertise

networking

interacting with others in order to build relationships useful to a business

Small Business

involves 1-50 people and has its owner managing the business on a day-to-day basis

social entrepreneurship

involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities

exchange

moving resources,products, or services in exchange for money

Royalty

payment based on the number or value of licensed items sold

serial entrepreneurs

people who open multiple businesses throughout their career

Buyers

people who purchase an existing busienss

Slack resources

profits that are available to be used to satisfy the preferences of the owner in how the business is run

ISO (International Organization for Standardization)

refers to certification for having met a standard of quality that is consistently evaluated around the world

innovativeness

refers to how important a role new ideas, products, services, processes, or markets play in an organization

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

universilism

suggests that there is a code of right and wrong that everyone can see and follow

Utilitarianism

supports seeking the greatest good for the greatest number of people

incremental strategy

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

flexibility rewards

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

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

perserverance

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 -learned optimism

Mutuality

the action of each person helping another

Legitimacy

the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors

Mindshare

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

Fleasibility

the extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

emergence

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

Corporate Entrepreneurship

the form of entrepreneurship which takes place in existing businesses around new products, services, or markets

small and medium enterprises

the international term for small busniess

Income rewards

the money made by owning one's own business

Resources

the money, product, or knowledge that make up the business

opportunity recognition

the process of perceiving the possibility of a profitable new business or a new product or service

existence

the second stage of the BLC marked by the business being in operation but not yet stable in terms of markets, operations, or finances.

BATNA (Best Alternative to a Negotiated Agreement)

the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation

environment

the sum total of forces outside of the entrepreneur and the firm

goods or services

the tangible things (goods) or intangible commodities (services) created for sale

Creative destruction

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

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

Minimalized business professionalization

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

sustainable entrepreneurship

an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment

entrepreneurial ecosystem

A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses. The components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations.

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.

organizational identity

composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories part of the BRIE model

intention

the desire to start a business

success

the third stage of the business life cycle marked by the firm being established in its market, operation, and finances