Ch. 1

B.R.I.E.

(boundary, resources, intentions, and exchange) model describes the actions that need to take place for the business to be created in the earliest stage

(Not Vocab) If you don't succeed the first time, try again. Like- Perserverance

It took Thomas Edison 8,000 different attempts to find a material that would make his lightbulb work, if the first idea doesn't work, try something different.

Rarely mentioned rewards of owning a business

Recognition, admiration, power, family

Flexibility rewards

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

Perseverance

The behavior of continued effort to achieve a goal

corporate entrepreneurship

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

Ecommerce

The general term for conducting business on the internet

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

Growth rewards

What people get from facing and beating challenges

Four Key Ideas to Starting A Small Business

1. Believe that you can do it 2. Planning + Action = Success 3. Help Helps 4. Do well. Do Good.

Independent small businesses

A business owned by an individual or small group

Owner-managed firms

A business run by the individual who owns it

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

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

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

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.

Main street businesses

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

CSI entrepreneurship

Acronym for the three forms of entrepreneurship, corporate, social and independent

Effectuation

An approach used to create alternatives in uncertain environments

Firm

An organization that sells to or trades with others

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 ones income or a product or service

(Not Vocab) Ask for help

Don't be afraid to ask for help as there is vast amounts of wisdom waiting to be acquired through person and the internet, broaden your horizons and mind.

Crowdfunding

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

(Not Vocab) Scale back

If you have an idea, but don't have the resources to get started- try scaling back to a level where resources are currently available.

(Not Vocab) Bird in Hand Like- Effectuation

Instead of planning a firm and then looking for resources, consider starting a business you already have (knowledge, contacts, money, etc.) and think about what is the best use you can make of them.

Small Business

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

Overall growth strategy

One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm

Founders

People who create or start new businesses

Serial entrepreneurs

People who open multiple businesses throughout their career

Buyers

People who purchase an existing business

(Not Vocab) Take it on the road

Sometimes the place you live isn't the best environment or market for your product, service, or company to grow. Exploring other markets may help you find the road to success.

Crowdsourcing

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

Mindshare

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

Innovation

The entrepreneurial focus which looks at a new thing or a new way of doing things

Creation

The entrepreneurial focus which looks at the making of new entities

Customer-focus

The entrepreneurial focus which refers to being in tune with ones market

Efficiency

The entrepreneurial focus which refers to doing the most work with the fewest resources

Independent entrepreneurship

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

Small and medium enterprise

The international term for small businesses

Focuses of entrepreneurship

The key direction the organization intends to pursue

Income rewards

The money made by owning one's own business

Forms of entrepreneurship

The settings in which the entrepreneurial effort takes place

(Not Vocab) Plan to earn

Think through your capabilities, prospects, and passions to find the best idea for you, and then plan for action to make it happen.

(Not Vocab) Pivot

Try to start your business any way, and along the way you can always look for better opportunities. William Wrigley Jr. sold soap and baking powder and as a promotion gave away free gum, after noticing how popular the gum was, he switched his focus giving us Juicy Fruit.

Bootstrapping

Using low-cost or free techniques to minimize your cost of doing business

Occasionally mentioned rewards of owning a business

Wealth, product

Universally mentioned rewards of owning a business

flexibility, income, growth

Self-employed

working for yourself... come on now vocab..

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 (i.e. efficiency) is a major goal

Small Business Administration

A part of the US government, which provides support and advocacy for small businesses

Heir

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

Entrepreneur

A person who owns or starts an organization, such as a business.

Virtual instant global entrepreneurship

A process that uses the internet to quickly create businesses with a worldwide reach

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 owners schedule and way of working

innovativeness

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

Occupation

The type of activity a person does regularly for pay