Entrepreneurs
Two types of entrepreneurs
Necessity Entrepreneurs and Opportunity Entrepreneurs
The Five Ps of Entrepreneurial Behavior
Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization
Opportunistic planners
START WITH A GOAL instead of a plan and look for OPPORTUNITIES to achieve said goal
Standard business practice
a business action that has been widely adopted within an industry or occupation
Expert business professionalization
a situation that occurs when ALL MAJOR FUNCTIONS of a firm are conducted according to the standard business practices of its industry
perserverance
ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known
Promotion-prevention focus
attention to MAXIMIZING GAINS + MINIMIZING LOSSES
Planning styles
comprehensive, critical-point, opportunistic, reactive, habit-driven
Necessity-driven entrepreneurship
creating a firm as an alternative to unemployment
Opportunity-driven entrepreneurship
creating a firm to improve one's income or a product or service
Habit-driven planners
entrepreneurs who DO NOT PLAN, preferring to let all actions be dictated by their ROUTINES
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
passion
intense positive feeling an entrepreneur has towards the business or idea behind the business
Professionalization
standard business practices, expert business professionalization, specialized business professionalization, minimized business professionalization
specialized business professionalization
when businesses have founders or owners who are passionate about ONE OR TWO KEY BUSINESS FUNCTIONS, such as sales, operations, accounting, finance, or human resources
minimized business professionalization
when the entrepreneur does nearly everything in the simplest way possible
entrepreneurial life cycles
1. emergence 2. existence 3. success 4. take off (for high-growth ventures)
Reactive planners
entrepreneurs with a passive approach, who WAIT FOR QUEUES FROM THE ENVIRONMENT to determine what actions to take