Raven's Test
key business functions
-activities common to all businesses -sales, operations, accounting, finance, and human resources
Rearrange (or reverse)
-magnetic poetry example -idea trigger: what can you rearrange or reorder in the way your product or service appears?
Magnify (or Modify)
-taking an existing product and changing its appearance or adding more features -can also cue you to minimize something -idea trigger: what could i make more noticeable or dramatic, or different in some way from my competitors?
Handling a Crisis
1. Admit you're in trouble - quickly 2. Get to the scene as soon as possible 3. Communicate facts you know 4. Have one person serve as the firm's spokesperson 5. Separate crisis management from the everyday management of the firm 6. Deal with the crisis quickly
Independent Small Business
A business owned by an individual or small group
CSI entrepreneurship
Acronym for the three forms of entrepreneurship, corporate, social, and independent
5 P's of Entrepreneurial Behavior
Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization
Small and Medium Enterprises
The international term for small businesses
Income Rewards
The money made by owning one's own business
Psychology of Entrepreneurs
cognition and action
Owner Managed Firm
A business run by the individual who owns it
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 & market
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 Ecnonomy
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 Economy
A nation where the major forces for jobs, revenues, and taxes come from farming or extraction industries like forestry, mining, or oil production
Small Business Administration (SBA)
A part of the US gov that provides support and advocacy for small business
General Environment
A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector
Heir
A person who becomes an owner through inheriting or being given a stake in a family business
Serial Entrepreneur
A person who opens multiple business throughout his or her career
Franchise
A prepackaged business bough, rented, or leased from a company called a franchiser
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.
corridor principle
A theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity (which is like going down a corridor) you will encounter other opportunities.
promotion focus
An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains
prevention focus
An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.
green entrepreneurship
Another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields
Crowdfunding
Finding a business online through the collective involvement of others who provide donations, loans, or investments
caveat emptor
Latin term for "buyer beware" to put the burden for consumer protection onto the customer
Founders
People who create or start new businesses
Buyers
People who purchase an existing business
Crowdsourcing
Techniques often based on internet-based services to get opinions or ideas through the collective involvement of others
Flexibility Rewards
The ability of business owners to structure life in the way that suits their needs best
Unicorn
The most successful high-growth ventures, those with a valuation of $1 billion or more
Business life cycle
The sequence or pattern of developmental stages any business goes through during its life span.
Bootstrapping
Using low-cost or free techniques to maximize your cost of doing business
Growth Rewards
What people get from facing and beating challenges
Self Employed
Working for yourself
Standard business practice
a business action that has been widely adopted within an industry or occupation
SCAMPER
a creativity tool that provides cues to trigger breakthrough thinking substitute, combine, adapt, magnify or modify, put to other uses, eliminate, rearrange
family business
a firm in which one family owns a majority stake and is involved in the daily management of the business
license
a legal agreement granting you rights to use a particular piece of intellectual property
adapt
adaptation from existing products or services
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
Effectuation
an approach used to create alternatives in uncertain environments
Certification
an examination base acknowledgement that the firm is owned and operated as specified
passion
an intense positive feeling an entrepreneur has toward the business or the idea behind the business
Necessity-driven entrepreneurship
creating a firm as an alternative to unemployment
Mindshare
degree of attention to which your target market pays to your idea or organization
innovation
entrepreneurial focus that looks at a new thing or a new way of doing things
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
Habit-driven planners
entrepreneurs who do not plan, preferring to let all actions be dictated by their routines
opportunistic planners
entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it
Reactive planners
entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take
Making an ethical decision
ethics, ethical dilemma, caveat emptor, golden rule, utilitarianism, universalism, billboard principle, BATNA
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
e-commerce
general term for conducting business on the internet
set aside
government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms
Achieving Sustainability
identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment, or any combination of these outcomes green entrepreneurship
5 Competencies
key business functions, industry-specific knowledge, resource, determination, opportunity,
combine
possible combinations that result in something completely different
eliminate
search for opportunities that arise when you get rid of something or stop doing something
BATNA BEST ALTERNATIVE TO A NEGOTIATED SETTLEMENT
second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiaiton
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
preseverance
the behavior of continued effort to achieve a goal
Legitimacy
the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors based on people, product, or organization
developing a social network
the entrepreneur's set of relationships and contacts with individuals and institutions way to work trust, reciprocity, and long-term relationships into your day-to-day business operations.
Efficiency
the entrepreneurial focus that refers to doing the most work with the fewest resources
creation
the entrepreneurial focus which looks at the making of new entities
substitute
what might substitute for something else to form an idea
Women and Minorities
women-owned businesses are one of the fastest-growing sectors of all united states businesses
cognition
a person's way of perceiving and thinking about his or her experience
industry-specific knowledge
activities, skills, and knowledge, specific to businesses in an industry
billboard people
asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see
Opportunity-driven entrepreneurship
creating a firm to improve one's income or a product or service
opportunity competencies
skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
Universalism
suggests that there is a code of right and wrong that everyone can see and follow
Golden Rule
suggests you treat others in the manner you wish to be treated
Utilitarianism
supports seeking the greatest good for the greatest number of people
action
the visible behavior a person takes
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; the opposite of big business or "Wall Street" business
specialized business professionalization
A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources
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
Innovation-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
virtual instant global entrepreneurship
a process that uses the internet to quickly create businesses with a worldwide reach
ethical dilemma
a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do
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
Ethics
a system of values that people consider in determining whether actions are right or wrong
perseverance
ability to stick with some activity even when it takes a lone time, and when a successful or unsuccessful outcome is not immediately known
BRIE Model
boundary- creating a place for your business- in location and in people's minds resources- the money, product, knowledge, etc.., that make up the business intention- the desire to start a business exchange- moving resources/products/ services in exchange for money
5 skills for managing relations with the environment
building legitimacy, developing a social network, handling a crisis, achieving sustainability, and making ethical decisions
social capital
characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur
planning style
comprehensive planners, critical-point planners, opportunistic planners, reactive planners, habit-driven planners
Customer Focus
the entrepreneurial focus which refers to being in tune with one's market
Professionalization
the extent to which a firm meets or exceeds the standard business practices for its industry
Corporate Entrepreneurship
the form of entrepreneurship which takes place in existing businesses around new products, services, or markets
four focuses of entrepreneurship
the key directions the organization intends to pursue. The four focuses are creation (of new entities), customers, efficiency, and innovation (new products, services, or processes)
Put to other uses
think of ways you could generate a high number of opportunities for your product or service