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