Enter 4113: Exam 1
Boundary Resources Intention Exchange
4 Elements Needed to Get Your Business Started (BRIE)
Passion Perseverance Promotion/Prevention Focus Planning Style Professionalization
5 P's of Entrepreneurship
Standard business practice
A business action that has been widely adopted within an industry or occupation
Independent small businesses
A business owned by an individual or small group.
Owner-managed firms
A business run by the individual who owns it.
Family business
A firm in which one family owns a majority stake and is involved in the daily management of the business
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.
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.
Innovation-driven economy
A nation there 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.
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 economy
A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.
Small Business Administration
A part of U.S. government which provides support and advocacy for small business
Heir
A person who becomes an owner through inheriting or being given a stake in a family business.
Entrepreneur
A person who owns or starts an organization, such as a business
Self-Efficacy
A person's belief in his or her ability to achieve a goal.
Cognition
A person's way of perceiving and thinking about his or her experience
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.
Franchise
A prepackaged business bought, rented, or leased from a company
Organizational culture
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
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.
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
Minimalized business professionalization
A situation that occurs when the entrepreneur does nearly everything in the simplest way possible
Lifestyle or part-time firm
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.
Sparks Framework
A strategy-mapping tool that aids architecture firm leaders in business design decisions. It's a detailed road map of the major choices
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.
Flexibility rewards
Ability of business owners to structure life in the way that suits their needs
Key business functions
Activities common to all businesses Sales, operations, accounting, finance, and human resources
Industry-specific knowledge
Activities, skills, and knowledge, specific to businesses in an industry
Sustainable entrepreneurship
An approach to operating a firm or a line of business 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 a recycled material, or improve the environment.
Effectuation
An approach used to create alternatives in uncertain environments.
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.
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. *Displayed in 3 Ways:* By looking at the challenges of the business in a creative way By being persistently focused on the business By being absorbed by the tasks and concerns of the business
Firm
An organization that sells to or trades with others.
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
Novelty
Characterized by being different or new.
Imitative
Characterized by being like or copying something that already exists.
Necessity-driven entrepreneurship
Creating a firm as an alternative to unemployment.
Opportunity-driven entrepreneurship
Creating a firm to improve one's income or a product or service.
Mindshare
Degree of attention to which your target market pays to your idea or organization
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.
Innovation
Focus which looks at a new thing or a new way of doing things
Creation
Focus which looks at the making of new entities
Customer-focus
Focus which refers to being in tune with one's market
Efficiency
Focus which refers to doing the most work with the fewest resources
Independent entrepreneurship
Form of entrepreneurship in which a person or group own their own for-profit business
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
Corporate entrepreneurship
Form of entrepreneurship which takes place in existing businesses around new products, services or markets
Competencies
Forms of business-related expertise
Believe that you can do this Planning + Action = Success Help Helps Do well. Do Good.
Four Key Ideas to Starting an Entrepreneurial Small Business
Crowdfunding
Funding a business online through the collective involvement of others who provide donations, loans, or investments.
The Einstein Archetype
Generate original ideas and new technology; High profile design firms with original style; Often times receives grants and endowments; Staff likes to experiment as well as teach and publish *Innovation*
Set asides
Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms
Small Business
Involves 1-50 people and has its owner managing the business on a day-to-day basis
Income rewards
Money made by owning one's own business
Wealth, Product
Occasionally Mentioned Rewards
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.
Time management
Organizing process to help make the most efficient use of the day List, 123 Prioritize, Delegate, Repeat, Strategize
Second career entrepreneurs
People who begin their businesses after having left, retired, or resigned from work. Can include veterans of the armed forces and civilians from a broad range of industries.
Founders
People who create or start new businesses
Serial entrepreneurs
People who open multiple businesses throughout their career.
Buyers
People who purchase an existing business.
Virtual Instant Global Entrepreneurship (VIGE)
Process that uses the Internet to quickly create businesses with a worldwide reach. Depends on using websites like eBay (for products) or Upwork (for services) to quickly establish a global presence
Slack resources
Profits that are available to be used to satisfy the preferences of the owner in how the business is run.
Recognition, Power, Admiration, Family
Rarely Mentioned Rewards
Innovativeness
Refers to how important a role new ideas, products, services, processes, or markets play in an organization
Determination competencies
Skills identified with the energy and focus needed to bring a business into existence
Opportunity competencies
Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
The Niche Expert Archetype
Specialist dedicated to a specific type of project or service within a broader market; They watch the experiments of the Einsteins and adopt them to create state-of-the-art work; They frequently team through a network of other firms to provide full services for a given project; Often national or international in scope. *Cutting-edge method*
Crowdsourcing
Techniques often based on Internet-based services to get opinions or ideas through the collective involvement of others
Feel --> Check--> Plan--> Do
The Entrepreneurial Process
Resource competencies
The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business Time, information, location, financing, raw materials, expertise
Perseverance
The ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known Learned optimism
Emergence
The first stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business t actually starting the business.
Small and medium enterprise
The international term for small businesses.
Role conflict
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
Succession
The process of intergenerational transfer of a business Lack of clear transition plan is the death knell
Resource maturity
The resource maturity stage is the most typical fourth stage of the small business Characterized by relatively stable or slowly rising sales and profits over several years. In a firm that has a takeoff stage following the success stage, the resource maturity stage occurs after takeoff.
Existence
The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances.
Business life cycle
The sequence or pattern of developmental stages any business goes through during its life span.
Liability of newness
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.
Goods or Services
The tangible things or intangible commodities created for sale.
Success
The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.
Action
The visible behavior a person takes.
Creative destruction
The way that newly created goods, services, or firms can hurt existing goods, services, or firms.
The Orchestrator Archetype
These firms focus on outstanding project management, bringing their skills to bear on large, complex projects, including their best design/build job; Emphasis on speed, coordination, and control; Known for their project management and construction management skills; know their work, know their process, and enjoy the time/cost challenge, they are effective *Project management challenge*
The Community Leader Archetype
These firms will aim for a leadership within their community/town; They set deep roots into the community, developing close relationships on both social and political levels; They seek premier local project work, which ranges across the board in size and type (public & private buildings, police and fire station, schools, shelters); They invest heavily in their local network *Community contribution*
Takeoff
This stage occurs after the success stage for a small percentage of businesses. Characterized by rapid growth (5-10 percent a month or more). When this growth levels off, the firm enters the resource maturity stage.
The Market Partner Archetype
Typically leads in one or a few major markets (healthcare, higher education, food and beverage, or airports); Strong advocates for their clients and clients' industries, often leading to lobbying efforts and crusading at client meetings. They share their clients goals and values, creating personal friendship; Serve multiple segments within their industry. *Customer partnership*
Basic business competency
Understanding the organizational and business processes of a firm
Flexibility, Income, Growth
Universally Mentioned Rewards
Bootstrapping
Using low-cost or free techniques to minimize your cost of doing business.
Growth rewards
What people get from facing and beating challenges
Self-employed
Working for yourself.
