New Business Ventures CH. 1, 2, 3
Hurdles
Inaction Taking the right actions
Entrepreneur
Founder/ Manager of the business
Specialized Professionalization
Founders or owners are passionate about one or two of the key business functions.
3 types of rewards
Growth Rewards Income Rewards Flexibility Rewards
Entrepreneurial Operational Competencies
Key Business Functions Industry Specific Knowledge Resource Competencies Determination Competencies Opportunity Competencies
Myths about Small Businesses
Not enough financing You can't start a business during a recession To make profits, you need to make something If you fail, you can never try again Students don't have the skills to start a business Ninety percent of all new businesses fail within two years
Testing and Validation
Reaching out to 100 friends Technical Issues (making website) Marketing and branding (finding logo) Bootstrapping versus hiring (what youre will to do, what youre willing to spend Getting 100 test subjects Survey Monkey
2 Government Agencies for Small Businesses
SBA: Small Business Administration SBDC: Small Business Development Center
Wantrapreneur
Someone who wants to start a business but never follows through with it
Organizational Identity
composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories part of the BRIE model
Bootstrapping
using low-cost or free techniques to minimize your cost of doing business
Sustainable Entrpreneurship
An approach to operating a firm or a line of business which identifies, creates, and exploits opportunities to make profit in a way that can minimize the depletion of natural resources
The Idea Phase
Brainstorming and putting together business competencies Building a prototype
Planning Styles of Entrepreneurs
Comprehensive (long term) Critical Point (most important first) Opportunistic (start with a goal) Reactive (passive) Habit (dont plan)
Boundary
Creating a place for your business- in location and in peoples minds
Minimalized business professionalization
Entrepreneur figures that "good enough" is all that is necessary to keep the business going.
Components of Small Business Environment
External Environment Task Environment Internal Environment Organizational Culture
Professionalization
The extent to which a firm meets or exceeds the standard business practices for its industry.
business environment
The sum of forces outside the entrepreneur and the firm
Expert Business
Those which you notice everything seems to be done in the best way possible. Firm has exceeded the standard business practices of the industry.
Standard Business Practice
a business action that has been widely adopted within an industry or occupation
Legitimacy
belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors.
social entrepreneurship
doing business for a social cause, help support social, cultural or environmental issues.