Entrepreneur Exam 2

Aggradizing

Making your business or yourself seem more accomplished than it is

Covenants

the limitations imposed on your property by your neighborhood group

Conflict of interest

A situation in which a person faces two or more competing standards or goals

Organizational Identity

Composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories

Boundary

Separating and balancing business and home

Cannibalizing

taking business away from your employer

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.

Ethics

A system of values that people consider in determining whether actions are right or wrong

BATNA

An acronym for "Best Alternative To a Negotiated Settlement" in which the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation

Billboard Principle

Asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see

Outsourcing

Contracting with people or companies outside your business to do work for your business

Poisoning the well

Creating a negative impression among your employers' customers

Opportunity Recognition

Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.

Universalism

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

Golden Rule

Suggests you treat others in the manner you wish to be treated

Utilitarianism

Supports seeking the greatest good for the greatest number of peopl

Delegation

The assignment of work to others over whom you have power

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

Social Network

The entrepreneur's set of relationships and contacts with individuals and institutions.

External Environment

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

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.

Permanence

The impression of long-term continuity a business gives others

Internal Environment

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

Environment

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

Bootstrapping

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

Moonlighting

Working on your own part-time after your regular job

Caveat Emptor

a Latin phrase meaning "let the buyer beware" which is used by businesses to put the burden for consumer protection onto the customer

Ethical Dilemma

a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do

Imitative strategy

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

Zoning Laws

government specifications for acceptable use of land and buildings in particular areas

Time to start-up

how long it takes to start a new business

Networking

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

incremental strategy

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

Entrepreneurial Alertness

the ability to notice things without engaging in deliberate search

Mutuality

the action of each person helping another

Cost to start-up

the amount of money it takes to start a new business

Feasibility

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

Social Capital

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

Avoid Pitfalls

1. Identifying the wrong problem 2. Judging ideas too quickly 3. Stopping with the first good idea 4. Failing to act 5. Obeying rules that don't exist

Developing a Social Network

1. Make it easy for people to contact you 2. Take the initiative to ask others on the network to link with you 3. Find and link up with network mavens 4. Keep at it!

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.