Entrepreneurial Small Business Chapter 2

Perseverance

ability to stick with some activity even when it takes a long time

Key business functions

activities common to all businesses

Industry-specific knowledge

activities, skills, and knowledge, specific to businesses in an industry

Prevention focus

an entrepreneur's attention to minimizing losses, with a bias towards 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-driven 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

Late career entrepreneurs

people who begin their businesses after having retired or resigned

Succession

process of intergenerational transfer of a business

Expert business professionalization

situation that occurs when all the major functions if a firm are conducted according to the standard business practices of its industry

Specialized business professionalism

situation that occurs when businesses have founders or owners who are passoniate about one or two of the key business functions, such as sales, operations, accounting, finance or human resources

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

Basic business competency

understanding the orgnaizational and business processes of a firm

Resource competencies

ability or skill of the entrepreneur at finding expandable components neccesary to the operation of the business

Promotion focus

an entrepreneur's attention to maximizing gain and pursuing opportunities likely to lead to gains

Reactive planners

entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take

Family business

firm in which one family owns a majority stake and is involved in the daily management of the business

Competencies

form of business-related expertise

Set asides

government contracting funds which are earmarked for particular kinds of firms,such as small businesses, minority-owned firms, and women-owned firms

Passion

intense positive feeling an entrepreneur has towards the business or the idea behind the business

Role conflict

kind of problem that arises when people have multiple responsibilities and the different responsibilties make different demands on them