Entrepreneurship - Exam #1
The particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry.
Competitive Advantage
Types of Customers?
Corporate Customers, Loyal customers, Local customers, and Passionate customers
refer to the ways by which a firm can keep costs low for the customer
Cost Benefits
The extent to which a product or service is like another.
Degree of Similarity
A 30-second (100 words or less) action-oriented description of a business designed to sell me the idea of the business to another.
Elevator Pitch
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family.
External Legitimacy
An overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas.
Incremental Innovation
An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing.
Innovative Strategy
Cost Benefits include:
Lower costs, Scale savings, Scope savings, Learning, and Organizational Practices
The posttax income the entrepreneur personally seeks from the business.
Magic Number
The business term for the population of customers for your product or service.
Market
A customer group that involves large portions of the population.
Mass Market
A paragraph that describes the firm's goals and competitive advantages.
Mission Statement
A narrowly defined segment of the population that is likely to share interests or concerns.
Niche Market
The name given to the formal presentation of a slideshow summarizing your business plan given before the judges or potential investors or partners.
Pitch
The name of a slideshow presentation that summarizes a business or more often a business plan
Pitch Deck
Value benefits include:
Quality, Style, Delivery, Service, Technology, Shopping ease, Personalization, Assurance, Place, Credit, Brand/Reputation, Belonging, and Altruism
Competitive responses requiring a major commitment of resources.
Strategic Actions
Competitive responses with low resource requirements.
Tactical actions
Memorable catchphrase that captures the key idea of a business, its service, product, or customer (also known as a slogan).
Tagline
Refer to what the customer senses in the product or service
Value Benefits
What are the general ideas of the Business Life Cycle?
1) there are multiple stages; 2) the key issues, actions, and lessons at each stage are different from the other stages; and 3) the level of risk the business faces changes from stage to stage
How many levels of professionalization are there?
3
Using low cost or free techniques to minimize your cost of doing business.
Bootstrapping
Which of the following is not one of the 5 skills for managing relations with the environment?
Bootstrapping
Creating a place for your business in space and in people's minds
Boundary ("B" in the BRIE Model)
What is the BRIE Model?
Boundary, Resources, Intention, and Exchange
Smart entrepreneurs check the likelihood for success of their idea through feasibility analyses or customer development processes, repeating these until they have a winning and saleable idea. This is done during the _______ step of the entrepreneurial process.
Check
The _____ of an organization will be a part of its task environment.
Competitors
Entrepreneurs who develop long-range plans for all aspects of the business.
Comprehensive Planners
The measure of how many visitors to your website (or people who click on your online advertisement) are willing to make a commitment to the product or service promoted on the site.
Conversion Rate
Entrepreneurs who develop plans focused on the most important aspect of the business first.
Critical-point Planners
The first stage in the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business.
Emergence
A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities.
Entrepreneurial Alertness
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.
Ethical Dilemma
A system of values that people consider determining whether actions are right or wrong.
Ethics
Making Investments in and sales from the business.
Exchange ("E" in the BRIE Model)
The forces, institutions, and people outside the boundary of the firm.
External Environment
What is the four step process that firms go through in order to be successful? (start-up process)
Feel, Check, Plan, and Do
The owner's to structure life in the way the suits their needs best.
Flexibility Rewards
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 scale.
General Environment
Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it.
Opportunistic Planners
Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.
Opportunity Recognition
______ refers to 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
A intense positive feeling an entrepreneur has toward the business or the idea behind the business.
Passion
What are the 5 P's of Entrepreneurial Behavior?
Passion, Perseverance, Promotion-Prevention Focus, Planning Style, and Professionalization
An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains
Promotion Focus
Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take.
Reactive Planners
The most typical fourth stage of the small business. It is characterized by relatively stable or slowly rising sales and profits over several years. In a firm that has the takeoff stage following the success stage, the resource maturity stage occurs after takeoff.
Resource Maturity
The things that make up the business , like money products, knowledge, etc.
Resources ("R" in the BRIE Model)
The kind of problem that arises when people have multiple responsibilities, such as a parent and boss, and the different responsibilities make different demands on them.
Role Conflict
Acceptance?
SB-Personal Validation; HGV- External legitimacy
Human Resources?
SB-Personalize; HGV- Professionalize
Grow?
SB-When necessary; HGV-When possible
_______ refers to the size of the market, whereas ______ refers to the geographic range covered by the market.
Scale;scope
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
Which of the following statements is not true of the target customers?
Usually you have one type of target customer
Small businesses are usually:
imitative in nature
The extent to which a firm meets or exceeds the standard business practices for its industry is known as ______.
professionalization
A person's belief in is or her ability to achieve a goal is called:
self-efficacy
Industry analysis is defined as the technique used to:
study the dynamics and trends of an industry
A ______ is a very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.
vision statement
________ refers to the sum total of the forces outside of an entrepreneur and a firm.
Environment
The process of intergenerational transfer of a business.
Succession
How many ways are there to plan?
5
The sequence or pattern of developmental stages any business goes through during its life span.
Business Life Cycle
The sum of all the forces outside the firm or entrepreneur.
Environment
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.
Existence
A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of an industry.
Expert Business Professionalization
A firm in which one family owns a majority stake and is involved in the daily management of the business.
Family Business
The extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market, and regulatory environment) forces that could affect your business.
Feasibility
______ means the extent to which an idea is viable and realistic, and the extent to which you are aware of internal and external forces that could affect your business.
Feasibility
Evaluates the potential of a business opportunity by studying 5 primary areas in depth: the overall business idea, the product/service, the industry and market, financial projections (profitability), and the plan for future action.
Feasibility Study
What people get from facing and beating challenges
Growth rewards
What are the 3 most popular types of rewards for small business owners?
Growth, Flexibility, and Income
Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines.
Habit-based Planners
A firm started with the intent of eventually going public, following the pattern of growth and operations of a big business.
High-Growth Venture
Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources are known as _________.
Key business functions
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.
Legitimacy
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
The firm that obtains the rights to use a particular piece of intellectual property is referred to as the:
Licensee
A situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than the professional way.
Minimalized Business Professionalization
The ability to stick with some activity even when it takes a long time and its outcome is not immediately known.
Perseverance
_____ refers to the preliminary run of a business, sales effort, program, or website with the goal of assessing how well the overall approach works and what problems in might have.
Pilot Test
An entrepreneurs attention to minimizing losses, with a bias toward inaction or protective action to prevent loss.
Prevention focus
The extent to which a firm meets or exceeds the standard business practices for its industry.
Professionalization
Personal control preference?
SB - Retain autonomy; HGV - Involve key others
What's more important?
SB - Sales; HGV - Marketing
When the firm is in trouble?
SB - cut costs; HGV - sell more
External control perference?
SB-Control firm; HGV-Control Market
Delegation Orientation?
SB-Delegation is difficult; HGV- Delegation is essential
Focus?
SB-Efficiency; HGV-Effectiveness
Profits that are available to be used to satisfy the preferences of the owner in how the business is run.
Slack Resources
This stage of the business cycle occurs once the firm is established in its market.
The success stage
A firm intended to provide a living income the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market.
Traditional small business
Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition.
Value Proposition
What does SCAMPER stand for?
substitute, combine, adapt, magnify or modify, put to other uses, eliminate, rearrange
What are the 5 approaches to managing relations with the environment?
Building legitimacy, Developing a social network, Handling a crisis, Achieving sustainability, and Making ethical decisons
A certification awarded to organizations for creating and implementing an environmental management system that meets the requirement of the International Standards Organization.
ISO 14001 Certification
An overall strategic approach in which the entrepreneur does more or less what others are already doing.
Imitative Strategy
The money made by owning one's business.
Income Rewards
On overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas is referred to as ________.
Incremental Innovation
Taking an idea and offering a way to do something slightly better than it does presently.
Incremental Strategy
Demonstrating a determination to get the business going and for it to be successful.
Intention ("I" in the BRIE Model)
The people and groups within the boundary of the firm, including the owners, managers, employees, and board members of the firm.
Internal Environment
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.
Lifestyle or Part-time firm
Involves 1-50 people and has its owner managing the business on a day-to-day basis
Small Business
Preferred funding source ?
Small Business - Owner's own money; High-Growth Venture - other people's money
The entrepreneur's set of relationships and contacts with individuals and institutions.
Social Network
A situation that occurs when businesses have founders or owners who are passionate about one or two key business functions, such as sales, operations, accounting, finance, or human resources, and pursues those functions in a professional manner.
Specialized Business Professionalization
A business action that has been widely adopted within an industry or occupation.
Standard Business Practice
_______ is the idea and actions that explain how a firm will make its profits.
Strategy
The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.
Success
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). When this growth levels off, the firm enters the resource maturity stage.
Takeoff
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.
Task Environment
A ______ plan is a document is designed to detail the major characteristics of a firm -- its product or service, its industry, its market, its manager of operating and its outcomes with an emphasis on the firm's present and future.
business
Meta-strategy?
SB-Imitation; HGV-Novelty
What limits growth?
SB-Loss of control; HGV-Market Response
A firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business.
High-performing small business
Funding a business online through the collective involvement of others who provide donations, loans, or investments.
Crowdfunding
2 ways to finance your small business?
Crowdfunding and Bootstrapping
