MGMT 470: Ch. 2 - Small Business Entrepreneurs: Characteristics & Competencies

~___% of all businesses are majority-owned by women

30%

•Women-owned businesses are a large sector of U.S. firms, yet they account for only _____% of national small business REVENUE.

4.3%

Challenge of ______: Refers to the simplest form of discrimination; When women or minority groups are simply excluded from the opportunities offered to firms owned by white males

Access

The _______ ________ _______: The sequence or pattern of developmental stages any business goes through during its life span

Business Life Cycle

Strategy Formulation _______ _______: - Central, but participative - Creates a thinking process - compromise btw strategic engineering & anarchy

Entrepreneurial Execution

The visible behavior a person takes

action

(4) Major Approaches to the Study of Entrepreneurship: (Pt. 2) No single factor is entirely responsible for the supply of successful entrepreneurs This is the ________ Approach

composite

(4) Major Approaches to the Study of Entrepreneurship: Entrepreneurial behavior is an outcome of the interplay of multiple social, cultural, economic, political and psychological factors This is the ________ Approach

composite

(5) Planning Styles of Entrepreneurs: Entrepreneurs who develop long-range plans for all aspects of the business These ppl are _______ planners.

comprehensive

A set of beliefs, knowledge, and thought processes that drives entrepreneurial behavior The _______ ________

entrepreneurial mindset

The ______ ______ is a set of skills that enable people to: - identify and make the most of opportunities - overcome and learn from setbacks - succeed in a variety of settings

entrepreneurial mindset

(4) Steps of the General Business Process: Making it real; Raise capital ($)

entrepreneurship

(4) The BRIE Model: making sales

exchange

(4) Steps of the General Business Process: Creating the idea; Proof of concept

innovation

_______ ________ _________: Activities common to all businesses such as sales, operations (production), accounting, finance, and HR

key business functions

The _______ ___ ________: The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business

liability of newness

(6) Key Elements of Entrepreneurial Culture: The team needs to believe in the business, its goals, products, and services Passion for the _______.

mission

(5) Aspects of Behavior (The 5 Ps): An intense positive feeling an entrepreneur has toward the business or the idea behind the business

passion

(4) Pillars of a Venture: 1. ________ 2. _______ 3. _______ 4. _______

people, assets, information, time

(5) Aspects of Behavior (The 5 Ps): The extent to which a firm meets or exceeds the standard business practices for its industry - Most entrepreneurs do at least one thing BETTER than avg.

professionalization

Promotion-Prevention Focus An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains This is ________ focus.

promotion

An individual's belief in his or her capacity to execute behaviors necessary to produce specific performance attainments

self-efficacy

__________ _________: Profits that are available to be used to satisfy the preferences of the owner in how the business is run

slack resources

(4) Steps to Entrepreneurial Execution: 1. _______ _______ 2. _______ _______ 3. _______ _______ & _______ 4. A culture of ______ & ______

strategy formulation, process management, performance measuring & reporting, experimentation & learning

Firms with a majority family ownership are a family business and they employ ____% of America's total workforce.

58%

Strategy Formulation Strategic ________: - Totally bottom-up - Out of control & unrealistic expectations

anarchy

(4) The BRIE Model: Uses key business functions to create the boundary

boundary

(4) The BRIE Model: 1. _______ 2. _______ 3. _______ 4. _______

boundary, resources, intention, exchange

(2) Solutions for Women & Minority-Owned Businesses: An examination-based acknowledgment that the firm is owned and operated as specified

certification

Passion is displayed in (3) ways: 1. By looking at the _______ of the business in a _______ way 2. By being persistently ______ on the business 3. By being _____ by the _____ & concerns of the business

challenges, creative, focused, absorbed, tasks

(4) Steps to Successful Execution of Strategy: 1. Set ______ _______ 2. Collect & analyze _____ 3. Keep a ______ to meetings 4. ______ the strategy

clear priorities, data, rhythm, evaluate

any specific types of business-related expertise

competencies

(5) Planning Styles of Entrepreneurs: 1. ________ planners 2. ________ planners 3. ________ planners 4. ________ planners 5. ________ planners

comprehensive, critical-point, opportunistic, reactive, habit-based

(5) Stages of the Small Firm Life Cycle: The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operation, or finances - 2nd riskiest period !!!

existence

(5) Planning Styles of Entrepreneurs: Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines These ppl are _______ planners.

habit-based

(4) Steps of the General Business Process: - The process of thinking and getting creative - Coming up with ideas

ideation

_________-_________ _________: Activities, knowledge, and skills specific to businesses in a particular industry

industry-specific knowledge

(6) Key Elements of Entrepreneurial Culture: If the team is always thinking about making things better for customers, one another, the firm, and its offering, it will mean the best days are always ahead of all Passion for _______.

innovation

(4) The BRIE Model: Reflects determination, or determination competencies, shown through focus and choices

intention

(6) Key Elements of Entrepreneurial Culture: 1. Passion for the _______ 2. Passion for the _______ 3. Passion for the _______ 4. Passion for _______ 5. Passion for _______

mission, team, customer, innovation, fairness

Entrepreneurial Execution harnesses the intellect & passion for employees that support: - ________ - ________ - _______ ________

mission, vision, core competencies

(5) Aspects of Behavior that most successful entrepreneurs display = The Five Ps of Entrepreneurial Behavior: 1. ________ 2. ________ 3. ________-________ ________ 4. ________ style 5. ________

passion, perseverance, promotion-prevention focus, planning, professionalization

(5) Aspects of Behavior (The 5 Ps): The ability to stick with some activity even when it takes a long time and its outcome is not immediately known

perseverance

(4) Major Approaches to the Study of Entrepreneurship: Deals with the issues involved in relationships between entrepreneurship development and the state particularly in the context of the role of the latter in the development of entrepreneurs This is the ________ Approach

political

_______ Competencies: The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business Ex: time, information, location, financing, raw materials, and expertise - Resources

resource

(4) The BRIE Model: Lead to specific resource competencies, or the ability to procure raw materials

resources

(2) Solutions for Women & Minority-Owned Businesses: 1. ____-_____ 2. _______

set-asides, certification

(4) Major Approaches to the Study of Entrepreneurship: 1. ________ Approach 2. ________ Approach 3. ________ Approach 4. ________ Approach

sociological approach, political, psychological, composite

______ stage firms show: - consistently growing financial performance, with slowly rising sales - Firms at this stage develop the information, skills, and routines to grow the business's profits

success

2nd Challenge for Family Businesses: The process of intergenerational transfer of a business

succession

(5) Stages of the Small Firm Life Cycle: 1. __________ 2. __________ 3. __________ 4. __________ __________ 5. __________

emergence, existence, success, resource maturity, takeoff

Strategy Formulation Strategic ________: - Senior mgmt. Exercise - Often utopia, NOT reality

engineering

(5) Stages of the Small Firm Life Cycle: The third stage of the business life cycle marked by the firm being established in its market, operation, and finances

success

A person's way of perceiving and thinking about his or her experience

cognition

(4) Steps of the General Business Process: The exchange; The product for $ or bartering of goods

commerce

(4) Advantages to a Family Business: 1. More effective _______ 2. Easier ______-______ 3. Strong ______ ______ 4. Major source of ______

communication, decision-making, business culture, funding

(5) Planning Styles of Entrepreneurs: Entrepreneurs who develop plans focused on the most important aspect of the business first These ppl are _______ planners.

critical-point

(6) Key Elements of Entrepreneurial Culture: A team that is always thinking about the customer and how to make their experience better will, in turn, make customers passionate about the company Passion for the _______.

customer

________ Competencies: Skills identified with the energy and focus needed to bring a business into existence - Intention

determination

When women and minority-owned firms are not given the same access to funds or contracting opportunities that white male-owned firms are given

discrimination in financing

(5) Stages of the Small Firm Life Cycle: - The 1st stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business - The riskiest period !!!

emergence

(3) Types of Strategy Formulation: 1. Strategic _________ 2. Strategic _________ 3. ________ ________

engineering, anarchy, entrepreneurial execution

(3) Levels of Professionalization: 1. _________ Business Professionalization 2. _________ Business Professionalization 3. _________ Business Professionalization

expert, specialized, minimalized

(6) Key Elements of Entrepreneurial Culture: An organization seeks to always be fair which calls for teams and individuals who emulate this Passion for ________.

fairness

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

family business

A Culture of Experimentation & Learning: Test, retest ______, ______, _______

move, act, communicate

Is there ONE pattern of entrepreneurial behavior or entrepreneurial type?

no

(5) Planning Styles of Entrepreneurs: Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it These ppl are _______ planners.

opportunistic

_______ Competencies: Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business - Exchange

opportunity

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done

organizational culture

Promotion-Prevention Focus An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss This is ______ focus.

prevention

(4) Major Approaches to the Study of Entrepreneurship: Typically, has a personality with creative, managerial, and imaginative skill who can innovate and contribute positively to an industrial project This is the ________ Approach

psychological

(2) Solutions for Women & Minority-Owned Businesses: Government contracting funds that are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like

set-asides

(4) Steps of the General Business Process: 1. _______ 2. _______ 3. ______ 4. _______

ideation, innovation, entrepreneurship, commerce

(5) Planning Styles of Entrepreneurs: Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take These ppl are _______ planners.

reactive

(5) Stages of the Small Firm Life Cycle: The most typical fourth stage of the small business; Characterized by relatively stable or slowly rising sales and profits over several years

resource maturity

1st Challenge for Family Businesses: The kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them

role conflict

(2) Challenges for Family Businesses: 1. ______ ______ 2. _______

role conflict, succession

(4) Major Approaches to the Study of Entrepreneurship: Deals with social and cultural factors responsible for the nature and growth of entrepreneurship development in --> (creates fads) This is the ________ Approach

sociological

(5) Stages of the Small Firm Life Cycle: - This stage occurs after the success stage for a small percentage of businesses - It is characterized by rapid growth (5-10% a month or more)

takeoff

(6) Key Elements of Entrepreneurial Culture: Team members need to feel good about one another as people and professionals and want to help one another - it isn't enough to avoid toxic employees Passion for the ______.

team

- Average (entrepreneurs are BETTER than this) - A business action that has been widely adopted within an industry or occupation

standard business practice