business ch 2
key business functions
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.
set asides
Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.
5 P's of Entrepreneurial Behavior
Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization
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.
Standard business practice
a business action that has been widely adopted within an industry or occupation
cognition
a person's way of perceiving and thinking about his or her experience
stakeholder
a person, organization or entity that has interest ir concern in a particular business or decision
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
Minimalized business professionalization
a situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than the professional way
industry-specific knowledge
activities, knowledge, and skills specific to businesses in a particular industry
Certification
an examination-based acknowledgement that the firm is owned and operated as specified
five types of planners
comprehensive, critical-point, opportunistic, reactive, habit based
promotion focus
entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains
prevention focus
entrepreneur's attention to minimize losses with a basis to ward 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-based 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
Competencies
forms of business-related expertise
passion
intense positive feeling an entrepreneur has toward the business or idea behind the business
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
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
action
visible behavior a person takes
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
the ability to stick with something even when it takes a long time, and the outcome is not immediately lnow
Professionalization
the extent to which a firm meets or exceeds the standard business practices for its industry