Entrepreneurship Test 1 Ch 1-6
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.
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.
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; Russia, Brazil, and China
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; Pakistan, Jamaica, and Venezuela
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; Germany, the Republic of Korea, and the United States
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
Task environment
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
heir
A person who becomes an owner through inheriting or being given a stake in a family business.
Self-efficacy
A person's belief in his or her ability to achieve a goal.
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 called a franchisor .
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
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.
Passion
An intense positive feeling an entrepreneur has toward the business or the idea behind the business.
Firm
An organization that sells to or trades with others.
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.
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.
Passion Perseverance Promotion/Prevention focus Planning style Professionalization
Five Ps of Entrepreneurial Behavior
set asides
Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, and women-owned firms
Networking
Interacting with others in order to build relationships useful to a business
22
Minority-owned businesses represent ___% of all United States businesses.
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.
Founder
People who create or start new businesses
Serial entrepreneurs
People who open multiple businesses throughout their career.
Buyers
People who purchase an existing business.
Recognition, admiration, power, family tradition
Rarely mentioned rewards of entrepreneurship
False
T/F Ninety percent of all new businesses fail within two years
Crowdsourcing
Techniques often based on Internet-based services to get opinions or ideas through the collective involvement of others.
Mutuality
The action of each person helping another
External Environment
The forces, institutions and people (i.e., the rest of the world) outside the boundary of the firm.
Permanence
The impression of long-term continuity a business gives others.
Internal environment
The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm
Environment
The sum total of forces outside of the entrepreneur and the firm.
Goods or Services
The tangible things or intangible commodities created for sale.
Creative destruction
The way that newly created goods, services, or firms can hurt existing goods, services, or firms.
Bootstrapping
Using low-cost or free techniques to minimize your cost of doing business.
Substitutes, Combine, Adapt, Magnify, Put to other uses, Eliminate, Rearrange
What does SCAMPER stand for?
SCAMPER
a creativity tool that provides cues to trigger breakthrough thinking
Entrepreneur
a person who owns or starts an organization, such as a business
Bird in the hand
a proverb meaning that it is better to have something that is certain than things that are not
Ethical Dilemma
a situation that occurs when a person's values are in conflict, making it unclear whether a decision is the right thing to do
Entrepreneurial alertness
a special set of observational and thinking skills that help entrepreneurs identify good opportunities
Ethics
a system of values that people consider in determining whether actions are right or wrong
Flexibility rewards
ability of business owners to structure life in the way that suits their needs; most rapidly growing type of reward
Industry-specific knowledge
activities, skills, and knowledge, specific to businesses in an industry
Certification
an examination base acknowledgement that the firm is owned and operated as specified
Imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
Serendipity
being in the right place at the right time (luck)
Social capital
characteristics of a business, like trust, consistency, and networks, that represent potential social obligations which are an asset of the firm or entrepreneur
Organizational identity
composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories
Mindshare
degree of attention to which your target market pays to your idea or organization
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
Competencies
forms of business-related expertise
virtual instant global entrepreneurship
process that uses the Internet to quickly create businesses with a worldwide reach; using websites like ebay or elance to quickly establish a global presence
ISO (International Standards Organization)
refers to certification for having met a standard of quality that is consistently evaluated around the world
Innovativeness
refers to how important a role new ideas, products, services, processes, or markets play in an organization
Opportunity recognition
searching and capturing new ideas that lead to business opportunities; involves creative thinking that leads to discovery of new and useful ideas
Determination competencies
skills identified with the energy and focus needed to bring a business into existence
Idea sites
websites where people post ideas they have and products and services they would like to see
Growth rewards
what people get from facing and beating challenges
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.
boundary, resources, intention, and exchange
Four Elements Needed to Get Your Business Started
Crowdfunding
Funding a business online through the collective involvement of others who provide donations, loans, or investments.
Independent entrepreneurship
form of entrepreneurship in which a person or group own their own for-profit business
Volatility
frequency of business starts and stops
Sustainable entrepreneurship
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
Small Business
involves 1-50 people and has its owner managing the business on a day-to-day basis
License
legal agreement ranting you rights to use a particular piece of intellectual property
Income rewards
money made by owning one's own business
Royalty
payment based on the number or value of licensed items sold
Resource competencies
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the 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
Opportunity competencies
skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
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
Incremental strategy
taking an idea and offering a way to do something better than it is done presently
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
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
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.
Feasibility
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