MGT491 Exam 1
Traditional small business
A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market.
main street businesses
A popular term for 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, and are the opposite of big businesses or "Wall Street" businesses.
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.
comprehensive planners
Develop long range plans for all aspects of the business
set asides
Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.
overall growth strategy
One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm.
The Five Ps of Entrepreneurial Behavior
Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization
second career entrepreneurs
People who begin their businesses after having left, retired, or resigned from work. These can include veterans of the armed forces and civilians from a broad range of industries.
internal environment
The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm
seven key strategies of the entrepreneurial way
`1. if you don't succeed the first time try try again 2. scale back 3. bird in the hand (make best use of resources you have) 4. pivot (as you start pursuing one line of work you will encounter other opps.) 5.take it on the road (sometimes the place you live isnt the best market for your product so try another market) 6.ask for help 7. plan to earn
serial entrepreneur
a person who opens multiple businesses throughout his or her career
entrepreneur
a person who owns or starts an organization such as a business
virtual instant global entrepreneurship
a process that uses the internet to quickly create businesses with a worldwide reach
organizational culture
a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems
passion
an intense positive feeling an entrepreneur has toward the business of the idea behind the business
customer focus
being in tune with your market
Opportunity-driven entrepreneurship
creating a firm to improve one's income or a product or service
Small Business
involves 1-50 people and has its owner managing the business on a day-to-day basis
basic methods of time management
list, prioritize, delegate, repeat, strategize
creation
looks at the making of new entities
external relations
managing relations with the environment -build legitimacy -develop social network -handling a crisis -acheive sustainability -make ethical decisions
exchange
moving resources/products/services in exchange for money
resource maturity
relatively stable or slowly rising sales and profits over several years. in firm that has a takeoff stage following the success stage, the resource maturity occurs after takeoff
business life cycle
sequence or pattern of stages any business goes through during its life span
self-efficacy
the belief in yourself
Corporate Entrepreneurship
the form of entrepreneurship which takes place in existing businesses around new products, services, or markets (Apple's iphone)
e-commerce
the general term for conducting business on the internet
emergence
the stage in which a person thinks about and takes actions toward starting a firm
environment
the sum of all the forces outside the firm or entrepreneur
Four Growth Strategies
1. lifestyle or part time firms 2. traditional small businesses 3. high performing small businesses 4. high growth ventures
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.
standard business practice
a business action that has been widely adopted within an industry or occupation
family business
a firm in which one family owns a majority stake and is involved in the daily management of the business
High-performing small business
a firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business
high-growth venture
a firm started with the intent of eventually going public, following the pattern of growth and operations of a big business
Efficiency-driven economy
a nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity is a major goal
factor driven economies
a nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining or oil production
innovation driven economies
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
a new thing or a new way of doing things
cognition
a persons way of looking at and thinking about oneself and their world
expert business professionalization
a situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry
Minimalized business professionalization
a situation that occurs when the entrepreneur does nearly everything in the simplest way possible
industry specific knowledge
activities, knowledge, and skills specific to business in a particular industry
boundary
creating a place for your business - in location and in peoples minds
Independent Entrepreneurship
form of entrepreneurship in which a person or group own their own for-profit business
competencies
forms of business related expertise
Lifestyle or part-time firm
have sales of 25,000 or less which provides for an income but not enough to live on -small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner most often through operations that fir the owner schedule and way of working
existence
having the business in operation but not yet stable in terms of markets, operations, or finances
opportunity competencies
skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
high growth ventures
start small but are intended to grow rapidly
flexibility rewards
the ability of business owners to structure life in the way that suits their needs best
perserverance
the ability to stick with some activity even when it takes a long time to reach a goal
external environment
the forces, institutions and people outside the boundary of the firm
role conflict
the kind of problem that arises when people have multiple responsibilities such as a parent and a boss and the different respobilities make different demands on them
trade magazines
the magazines that target specific industries and professions
Income rewards
the money made by owning one's own business
actions
the visible behavior a person takes
myths about small businesses
1. there's not enough financing 2. you can't start businesses during a recession 3. to make profits you need to make something 4. if you fail you can never try again 5. students dont have the skills to start a business 6. ninety percent of all new businesses fail within 2 years
CSI entrepreneurship
Acronym for the three forms of entrepreneurship, corporate, social, and independent
key business functions
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.
sustainable entrepreneurship
an approach to operating a firm or a line of business which identifies, creates and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment
four elements needed to get your business started
boundary, resources, intention, and exchange
5 Planning Styles
comprehensive, critical point, opportunistic, reactive, habit based
Necessity-driven entrepreneurship
creating a firm as an alternative to unemployment
four focuses of entrepreneurship
creation, customer focus, efficiency, innovation
habit-based planners
do not plan, preferring to let all actions be dictated by their routines
efficiency
doing the most work with the fewest resources
sequence of stages
emergence, existence, survival, success, and resource maturity
critical point planners
entrepreneurs who develop plans focused on the most important aspect of the business first
opportunistic planners
entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it
Universally mentioned rewards
flexibility, income, growth
social entrepreneurship
form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities
crowdfunding
funding a business online through the collective involvement of others who provide donations, loans, or investments
success
marked by the firm being established in its market, operation and finances
what small business provide for the economy
new jobs, innovations, new opportunities,
takeoff
occurs after success stage for a small percentage of businesses- rapid growth
organizational identity
part of the BRIE model; composed of the name, description, and distinctive elements of a firm such as trademarks, uniforms, logos, characters, and stories
6 key elements of entreprenerurial culture
passion for mission, passion for the team, passion for the customer, passion for innovation, passion for fairness
succession
process of intergenerational trasfer of a business
slack resources
profits available to be used to satisfy the preferences of the owner in how the business is run (flexibility)
promotion-prevention focus
promotion focus: entrepreneurs attention to maximizing gains and pursuing opportunites likely to lead to gains prevention focus: attention to minimizing losses, with a bias toward inaction or protective action to prevent
scanning ability to find resources you need from the environment to build your business PROFIT
property/phisical: buildings land equipment relational: customers, networks, distributors organizational: systems, structures, operational procedures financial: money, lines of credit cowdfunding intellectual: employees, contractors, advisers technological: patents, trademarks, ideas
certification
proving that the business is truly owned by a woman or minority
rarely mentioned rewards
recognition, admiration, power
innovativeness
refers to how important a role new ideas, products, services, processes, or markets play in an organization
liabilities of newness
set of risks faced by firms early in their life cycles that comes from lack of knowledge by the owners about the business they are in and by customers about the new business
determination competencies
skills identified with the energy and focus needed to bring a business into existence
resource competencies
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise
Legitimacy
the belief that a firm is worthy of consideration or doing business with
mindshare
the degree of attention your target market pays to your idea or organization
intention
the desire to start a business
Professionalization
the extent to which a firm meets or exceeds the standard business practices for its industry
resources
the money, product, knowledge that make up the business
occupation
the type of activity a person does regularly for pay
creative destruction
the way that newly created goods, services, or firms can hurt existing goods, services, or firms
bootstrapping
using low cost or free techniques to minimize cost of doing business
Reactive planners
wait for cues from the environment to determine what actions to take
occasionally mentioned rewards
wealth and to develop and idea for a product
growth rewards
what people get from facing and beating challenges
specialized business professionalization
when one or two aspects of the business are at professionaliztion level