MGMT 470: Ch. 1 - Small Business: Its Opportunities and Rewards

(4) Steps of the Entrepreneurial Process: - Where the entrepreneur has a 'feeling' - This STARTS the founding process

feel

______ or ______: The tangible things (_____) or intangible commodities (_____) created for sale

goods or services

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

heir

(4) Key Ideas to Starting an Entrepreneurial Small Business: Successful entrepreneurs learn from other entrepreneurs

help helps

______-_____ Ventures: Start small but are intended to grow rapidly

high-growth

(4) Generic Growth Strategies: A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business - Sales: > $1 M - Growth Rate: > 25%

high-growth venture

(4) Generic Growth Strategies: A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business - Sales: $100,000-$1 M - Growth Rates: 5-15% per yr

high-performing small business

Small businesses who are ______ in nature, with most small firms doing what other firms do, with slight variations

imitative

(4) Key Ideas to Starting an Entrepreneurial Small Business: Success comes from having the right sort of plan to get you to the right actions as quickly as possible

planning + action = success

More than ______ new firms with employees are created, there can be 10 to 15 times that many new owner-only firms → (ie., ___ million new firms a year)

400,000, 6

- The ____ model factors outline the activities that need to take place to get a firm going - Can help you deal with one of the biggest hurdles to starting a business --> ______!

BRIE, inaction

_____ Entrepreneurship: Acronym for the 3 forms of entrepreneurship - corporate, social, & independent

CSI

(3) Forms of Entrepreneurship: 1. _______ Entrepreneurship 2. _______ Entrepreneurship 3. _______ Entrepreneurship

Corporate, social, independent

________ Small Business: A business owned by an individual or small group

Independent

________ Entrepreneur: A person who opens multiple businesses throughout his or her career

Serial

Virtual Instant Global Entrepreneurship (____): A process that uses the Internet to quickly create businesses with a worldwide reach

VGE

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

bootstrapping

(4) Elements Needed to Get Your Business Started (BRIE): Creating a place for your business - in location & in people's minds

boundary

(4) Elements Needed to Get Your Business Started (____): 1. _______ 2. _______ 3. _______ 4. _______

boundary, resources, intention, exchange

People who purchase an existing business

buyers

(4) Steps of the Entrepreneurial Process: - Where the entrepreneur checks the likelihood for success of their idea through 'feasibility analyses' or customer development process

check

(3) Types of CSI Entrepreneurship: The form of entrepreneurship that takes place in existing businesses around new products, services, or markets - customer focus

corporate

_______ Principle: " As you start pursuing one line of work or opportunity (which is like going down a corridor) you will encounter other opportunities"

corridor

(4) Different Focuses of Entrepreneurship: The entrepreneurial focus that looks at the making of new entities

creation

The 4 forms of Entrepreneurship differ in which aspect of entrepreneurship they focus on: - Focus on _____ - Focus on _____ - Focus on _____ - Focus on _____

creation, customer, efficiency, innovation

(5) Global Entrepreneurship: _________-driven Economy - A nation where industrialization is becoming the major force providing jobs, revenues, and taxes - Where minimizing costs while maximizing productivity (ie., efficiency) is a major goal

efficiency

(4) Things Small businesses provide to the Economy: 1. New _____ 2. New _____ (innovation) 3. New _____ 4. New _____

jobs, ideas, opportunities, markets

(5) Global Entrepreneurship: _________-driven Economy Creating a firm as an alternative to unemployment

necessity

Entrepreneurial businesses are characterized by _______ of their products, services, or business models.

novelty

(5) Global Entrepreneurship: _________-driven Economy Creating a firm to improve one's income or a product or service

opportunity

Def 1: _____ _____ ____ One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for the firm

overall growth strategy

Def 2: The _____ _____ _____ describes: - the kind of business the owner would like to have, from the perspective of: - how fast and - to what level they would like the firm to grow

overall growth strategy

_____-_____ Firm: A business run by the individual who owns it

owner-managed

(7) Strategies to Achieve Entrepreneurial Dreams: If you don't succeed the first time, try, try again The strategy of ________.

perseverance

The behavior of continued effort to achieve a goal

perseverance

(4) Elements Needed to Get Your Business Started (BRIE): The money, product, knowledge, etc., that make up the business

resources

(7) Strategies to Achieve Entrepreneurial Dreams: If you have an idea, but don't have the resources to get started, ____ ____ to the level of resources you currently have available

scale back

(4) Key Ideas to Starting an Entrepreneurial Small Business: - A person's belief in his or her ability to achieve a goal - Believe that you can do this

self-efficacy

(4) Generic Growth Strategies: A firm intended to provide a living income to the owners and operating in a manner and on a schedule consistent with other firms in the industry and market - Smallest full-time business - Sales: $25,000-$100,000

traditional small business

(2) Occasionally Mentioned Rewards for Starting a Small Bus: 1. Building great _____ 2. ______ products

wealth, creating

Top 3 w/ Highest #s of Entrepreneurs: 1. _____-_____ 2. ________ 3. ________

Owner-managers, construction, farmers

Small and Medium Enterprise (____): The international term for small businesses

SME

Characterized by being like or copying something that already exists

imitative

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

mindshare

Characterized by being different or new

novelty

A ________ ________ involves 1-50 people and has its owner managing the business on a day-to-day basis.

small business

High-growth ventures are also called _______.

unicorns

The most successful high-growth ventures Valuations = $1Bil or more

unicorns

The _______ start a business - by themselves or in a franchise.

founders

Working for yourself

self-employed

(4) Steps of the Entrepreneurial Process: 1. ______ 2. ______ 3. ______ 4. ______

feel, check, plan, do

(6) Myths about Small Businesses: 1. There's not enough ______ 2. Can't start bus. during _____ 3. For profits, need to _____ something 4. If you fail, you can _____ _____ _____ 5. Students/moms don't have _____ 6. _____% of all businesses fail within ____ years

financing, recession, make, never try again, skills, 90%, 2

An organization that sells to or trades with others

firm

(3) Universally Mentioned (Key) Rewards for Starting a Small Bus: 1. ______ 2. A _____ _____ 3. _____ _____

flexibility, liveable income, personal growth

A ________: A prepackaged business bought, rented, or lease from a company called a franchisor

franchise

(5) Global Entrepreneurship: _________-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

innovation

______-driven Economy: Ex: Germany, Korea, U.S.

innovation

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

innovativeness

(4) Elements Needed to Get Your Business Started (BRIE): - The desire to start a business - The most frequently occurring element of the BRIE model

intention

(4) Generic Growth Strategies: 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 owner's schedule and way of working - Sales < $25,000 / year

lifestyle or part-time firms

(4) Generic Growth Strategies: 1. ______ or _____-_____ firms 2. ______ small business 3. _____-_____ small business 4. _____-_____ venture

lifestyle, part-time, traditional, high-performing, high-growth

______ ______ Businesses: 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"

main street

- Entrepreneurial Businesses = Characterized by ______. vs. - Small Businesses = ______ in nature.

novelty, imitative

As economies move from a: factor-driven basis to an innovation-driven basis, the proportion of ______-driven entrepreneurship _______.

opportunity, increases

(7) Strategies to Achieve Entrepreneurial Dreams: 1. _________ 2. _____ _____ 3. ______ - bird in the hand 4. ______ - Corridor Principle 5. Take it on the _____ 6. Ask for ______ 7. Plan to ______

perseverance, scale back, effectuation, pivot, road, help, earn

(4) Steps of the Entrepreneurial Process: Getting from the idea to the business - Done by small-scale, part-time start-ups, business modeling, or doing a business plan

plan

(7) Strategies to Achieve Entrepreneurial Dreams: Think through your capabilities, prospects, and passions to find the best idea for you, and then plan for action to make it happen

plan to earn

(4) Rarely Mentioned Rewards for Starting a Small Bus: 1. ______: To achieve something 2. ______: To be respected 3. ______: To lead & motivate others 4. ______: Cont. family tradition

recognition, admiration, power, family

____________ Entrepreneurship: An approach to operating a firm that identifies, creates, and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of recycled material, or improve the environment

sustainable

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

crowdfunding

(2) New Sources of Financing: _____ & ______

crowdfunding, bootstrapping

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

crowdsourcing

(4) Different Focuses of Entrepreneurship: The entrepreneurial focus refers to being in-tune with one's market

customer

(4) Steps of the Entrepreneurial Process: - Refining your approach until you have a successful firm, including an additional round of refinement and revising - LAST element

do

(4) Key Ideas to Starting an Entrepreneurial Small Business: Always remember to do good for others as you try to do well in your business; you'll feel better about your business & life, and those around you will too

do well, do good

The general term for conduction business on the Internet

e-commerce

(7) Strategies to Achieve Entrepreneurial Dreams: start with the resources you already have and think about what is the best use you can make of them The strategy of ______.

effectuation

An approach used to create alternatives in uncertain environments

effectuation

(4) Different Focuses of Entrepreneurship: The entrepreneurial focus that looks at a new thing or a new way of doing things

efficiency

______-driven Economy: Ex: In more industrialized economies - (ex: Russia, Brazil, China)

efficiency

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

entrepreneur

(4) Elements Needed to Get Your Business Started (BRIE): Moving resources/products/services in exchange for money

exhange

(5) Global Entrepreneurship: _________-driven Economy In nations where there is little manufacturing, most industry relates to farming and extracting raw materials, (ex: mining & forestry)

factor

(5) Global Entrepreneurship: 1. _________-driven Economy 2. _________-driven Economy 3. _________-driven Economy 4. _________-driven Economy 5. _________-driven Economy

factor, efficiency, innovation, opportunity, necessity

(3) Types of CSI Entrepreneurship: The form of entrepreneurship in which a person or group owns a for-profit business - Self-employed founders

independent

As the entrepreneur, you may be the owner of the business, but your _______ will depend on: what type of goods or services you and your firm are producing

occupation

The type of activity a person does regularly for pay

occupation

(4) Key Ideas to Starting an Entrepreneurial Small Business: 1. ____-_____ 2. _____ + _____ = ______ 3. ______ ______ 4. do _____, do ______

self-efficacy, planning + action = success, help helps, well, good

______ _______ ________: Self-employed entrepreneurs

small business owners

(3) Types of CSI Entrepreneurship: - Founders of nonprofit organizations or those pursuing for-profit social ventures - Charitable organizations

social

(7) Strategies to Achieve Entrepreneurial Dreams: If the place you live isn't the best market for your product/service, take it somewhere else.

take it on the road