Entrepreneurship( mod 2.)

Five Ps of Entrepreneurial Behaviour

1. Passion 2. Perseverance 3. Promotion-Prevention Focus 4. Planning Style 5. Professionalization

three levels of professionalization

1. expert business professionalization 2. Specialized business professionalization 3. minimalized business professionalization

Entrepreneurial Operational Competencies

1. key business functions 2. Industry- Specific Knowledge 3. Resource Competencies 4. Determination Competencies 5. Opportunity Competencies

second career entrepreneurs

A special group of entrepreneurs are called _______ —people who begin their businesses after having left, retired, or resigned from work. This can be work in the armed forces, in other profit or not-for-profit organizations, or even when parents are no longer tied to caring for others at home. As increasing numbers of corporations merge, downsize, reorganize, and/or close altogether, many firms are offering attractive retirement packages to encourage employees to voluntarily leave the organization

Key Business Functions

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources. ​

Industry- Specific Knowledge

Activities, knowledge, and skills specific to businesses in a particular industry. ​

Business Life Cycle

Emergence Existence Success Resource Maturity Take off. ​

role conflict, basic methods

List 123 Prioritize Delegate Repeat Strategize

Promotion- Prevention Focus

Most of us have some mix of two internal focuses (also called our regulatory focus),

professionalization

One hallmark of successful entrepreneurs is that they usually do at least one thing much better than average. That average is called a "STANDARD BUSINESS PRACTICE" and every industry has them.

six key elements of sociological culture

Passion for the Mission. Passion for the Team Passion for the Customer Passion for Innovation Passion for Fairness

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. ​

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.

Emergence

The first stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business. ​

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. The problems of mastering these three areas form what are called the liabilities of newness for small businesses in their existence stage. ​

Success

The third stage of the business life cycle marked by the firm being established in its market, operation, and finances. Slack resources. Profits that are available to be used to satisfy the preferences of the owner in how the business is run. ​

Entrepreneurial culture

There is a special case of organizational culture for start-ups, called

planning style

There is more than one way to plan. In fact, there are five ways

Take off

This stage occurs after the success stage for a small percentage of businesses. It is characterized by rapid growth (5-10 percent a month or more). When this growth levels off, the firm enters the resource maturity stage. ​

Reactive Planners

are completely passive, waiting for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts. They can make the most of a situation because there is no other plan competing for their attention.

family business

are firm in which one family owns a majority stake and is involved in the daily management of the business. Some of the top companies in the Philippines are run by families. SM Investments Corp. is owned by the family of the country's richest family, the Sy Sibings., while Ayala Corp. is led by the Zobel family. LT Group is owned by the family of tycoon Lucio Tan, while Aboitiz Equity Ventures is run by members of the Aboitiz clan. ​

role conflict

describes the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and each makes different demands on them. Role conflict breeds another unending problem—the shortage of time. Entrepreneurs are among the most rushed people in the workforce. There are, however, a collection of techniques for time management, which can help meet the challenges of schedule overload.

habit-based planners

do not really plan at all because their actions are dictated by their routines. They do today what they did yesterday. They don't plan, and they don't even tend to react to changes in their environments

opportunistic planners

generally start with a goal and look for opportunities to achieve it. Once they find a good opportunity, even if it isn't the one related to their original goal, they act on it, so it is very short term in orientation.

promotion focus

intent on maximizing gains, which gives us a bias toward pursuing opportunities likely to lead to those gains

Prevention focus

intent on minimizing losses, with a bias toward inaction or protective action. Being a successful entrepreneur involves balancing the two focuses. ​

Passion

is an intense positive feeling the entrepreneur has toward the business or even the idea behind the business. It comes from being actively involved in moving the business forward. ​

Perseverance

is best thought of as a type of learned optimism, 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. ​

resource maturity

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 a takeoff stage following the success stage, the resource maturity stage occurs after takeoff. ​

Critical Point Planners

plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning.

sociological characteristics

relate to the social groups to which they belong. Family, gender, race, nationality, religion, age, and other types of group memberships, such as being a member of a team or a veteran, are typical examples.

two challenges of family business

role conflict succession

comprehensive planners

take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they've developed

succession

the process of intergenerational transfer of a business. Often the lack of a clear succession plan is the death knell for those family firms facing their first intergenerational transition. If the founder dies, becomes seriously ill, or is incapacitated before he or she can groom a successor, the new family leader may be suddenly thrust into the role before coming up to speed on vital company information and developing needed skills. Also, in the absence of a succession plan, private and public dissension among various factions of the family becomes more likely, negatively affecting operations within the firm, and may eventually cause the business to fail

Expert business professionalization

when most aspects of the business meet or exceed the industry's standards

minimalized business professionalization

when none of the aspects of the business achieve the industry standard

specialized business professionalization

when one or two aspects of the business are at this level