Business Exam 1

BRIE model

4 components that can help us understand succesful small businesses, these include boundary, resources, intention, exchange

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 political sector

magnify (or modify SCAMPER)

Taking an existing product and changing its appearance or adding more features

SCAMPER

a creativity tool that provides cues to trigger new ideas for your 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

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, and interest groups

heir

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

franchise

a prepackaged business bought, rented, or leased from a company called a franchisor

entrepreneurial alertness

a special set of observational and thinking skills that help entrepreneurs identify good opportunities

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 business

adapt (SCAMPER)

adaptation form existing products or services

imitative strategy

an overall strategic approach in which the entrepreneur does more or less what others are already doing

having enough money in case business goes bankrupt

challenges for a second career entrepreneur

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

other people's money, marketing, effectiveness

characteristics of a high-growth venture business

owner's own money, sales, efficiency

characteristics of a small business

organizational identity

composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories (Part of Boundary in BRIE model)

lack of family interest, conflict between family members, lack of structure

cons of a family business

boundary (BRIE)

creating a place for your business - in location and in people's minds

feasibility study

determining if an idea is realistic

social entrepreneurship

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

corporate entrepreneurship

form of entrepreneurship which takes place in existing businesses around new products, services, or markets, focuses on customer focus and innovation

5%

growth rates for high-growth venture business

20%

growth rates for high-performing small business

exchange (BRIE)

moving resources/products/services in exchange for money

time management

organizing process to help make the most efficient use of the day

royalty

payment based on the number or value of license items sold

second career entrepreneur

people who begin their businesses after having left, retired, or resigned form work

founder

people who create or start new businesses

combine (SCAMPER)

possible combinations that result in something completely different

stability, commitment, flexibility

pros of a family business

$1,000,000 and up

range of sales for high-growth venture business

$100,000 to $999,999

range of sales for high-performing small business

radical innovation strategy

rejecting existing ideas, and presenting a way to do things differently

eliminate (SCAMPER)

search for opportunities that arise when you get rid of something or stop doing something

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

licensor

someone that issues a license

incremental strategy

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

resource competencies

the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business

intention (BRIE)

the desire to start a business

external environment

the forces, institutions and people outside the boundary of the firm

licensee

the holder of a license

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

resources (BRIE)

the money, product, knowledge that make up the business

internal environment

the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

succession

the process of intergenerational transfer of a business, challenge could be deciding which child gets business

put to other uses (SCAMPER)

think of ways you could generate a high number of opportunities for your product or service

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

substitute (SCAMPER)

what might substitute for something else to form an idea

service business

which industry do women typically choose