Entrepreneurship Test 1 (chapters 1-5)

heir

a person who becomes an owner through inheriting or being given a stake in a family business

identity

what a firm does and where it does it

dynamic capitalism typology

a model of an economy categorizing businesses based on their innovativeness and growth rate

flexibility rewards

ability of business owners to structure life in the way that suits their needs best

resource competencies

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, expertise

key business functions

activities common to all businesses such as sales, operations, accounting, finance, and human resources

social capital

characteristics of a business (trust, consistency, networks) that help make the business operations smooth and efficient

handling a crisis (6 steps)

1. Admit you're in trouble - QUICKLY 2. Get to the scene ASAP 3. Communicate facts that 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. Take steps to solve the problem.

ways to build legitimacy (3)

1. Employees should be dependable organizational citizens 2. Do not do anything that will harm the organization 3. Be good to customers

ways to scan the environment (3)

1. Look for trends and future-looking articles in the professional press 2. Keeping notes on things that bother you about the way work is done now 3. Subscribing to a couple of magazines/newsletters outside your area of business

5 skills for managing relations with the environment

1. building legitimacy 2. developing a social network 3. handling a crisis 4. Achieving sustainability 5. Making ethical decisions

3 steps to making ethical decisions

1. define the moral problem 2. generate alternatives that could meet the ethical, legal, and economic goals every business must balance 3. pick the best alternative you and your business can live with and implement it

BATNA

Best Alternative to a Negotiated Settlement

BRIE assessment

Boundary Resources Intention Exchange

industry-specific knowledge

activities, knowledge, and skills specific to business in a particular industry

environment

all of the forces outside the firm

growth entrepreneurs

also lifetime owners, their goal is major success and if they top out with one business they'll start another

spiral, or helical entrepreneurs

alternate periods of growth and stability which are determined by personal or family needs

factor-driven economies

antion where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production

Sustainable entrepreneurship

approach to the operations of a firm which identifies or creates then exploits opportunities to make a profit that minimizes the depletion of natural resources

bootstrapping

asking to borrow, rent or trade for resources to start a business

networking

building and keeping up relationships with people in your social network

standard business practice

business action that has been widely adopted within an industry or occupation

independent small business

business owned by an individual or small group

novelty

characterized as being different or new

imitative

characterized by being like or copying something

ambitious sector

characterized by high growth rate and low innovation

economic core sector

characterized by low growth rate and low innovation (most common)

internal environment

consists of those people inside the boundary (owner, employees, stakeholders)

mindshare

degree of attention your target market pays to your idea or organization

Social network

entrepreneur's relationships and contacts with others

efficiency

entrepreneurial focus on doing the most work with the fewest resorces

customer focus

entrepreneurial focus which refers to being in tune with one's market

social entrepreneurship

entrepreneurship in which the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities

public entrepreneurship

entrepreneurship that involves revitalizing government agencies

corporate entrepreneurship

entrepreneurship that takes place in existing businesses around new products, services, markets

feasibility

extent to which an idea is viable and realistic

Incubator

facility which offers subsidized space and business advice to companies in their earliest stages of operation

glamorous sector

firms with high growth rate and high innovation (fortune 500)

resource constrained sector

firms with high innovation and low growth rate

independent entrepreneurship

form of entrepreneurship in which a person or group own their own for-profit business

sponsored link

form of paid advertising that gets your company's web site at the top of a search list.

competencies

forms of business-related expertise

informal capital

funding invested for a share of a firm or given as loans or credit from family, friends, and other businesses used to help start or grow a firm

set-asides

government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms and the like

zoning laws

government specifications for acceptable use of land and buildings in particular areas

RSS feed

internet messaging service that sends whatever web material you specify to subscribers to that feed

license

legal agreement granting you rights to use a particular piece of intellectual property

general environment

major forces of the lives of people and institutions like businesses and even nations

conversion rate

measure of how many visitors to your web site actually make a purchase from you

income rewards

money made by owning one's own business

Efficiency-driven economy

nation where industrialization is becoming the major force providing jobs, revenues, and taxes and where minimizing costs while maximizing productivity

Innovation-driven economy

nation where the major forces for jobs, revenues, and taxes come from high-value added production based on new ideas and technology.

ethical dilemma

occurs when a person's values are in conflict

time management

organizing process to help make the most efficient use of the day

imitative strategy

overall strategic approach in which the entrepreneur does more or less what others are already doing

habitual entrepreneurs

owners for a lifetime, sometimes in one business, sometimes across many

Small business administration

part of US government which provides support and advocacy for small businesses

task environment

parts of the environment that directly and consistently touch on the firm

royalty

payment to a licensor based on the number or value of licensed items sold

late career entrepreneurs

people who begin their business after having retired or resigned from work in corporations at age 50 or later

founders

people who create or start new businesses

occasional entrepreneurs

people who generally have another job that is their primary one. pursue entrepreneurship periodically

variance

permission from a government organization to act differently that the laws state

licensor

person or firm which is offering the rights

pilot test

preliminary run of a business, sales effort, program, or web site with the goal of assessing how well the overall approach works and what problems it might have

franchise

prepackaged business bought, rented, or leased from a company called a franchisor

consumer

private individual or household that is the end-user of a product or service

virtual instant global entrepreneurship

process that uses the internet to quickly create businesses with a worldwide reach

potential for growth

refers to the potential market size

radical innovation strategy

rejecting existing ideas, and presenting a way to do things differently

occupational structure

sequence or organization of jobs and careers in the economy

organizational culture

set of shared believes or basic assumptions that demonstrate how things get done

expert business professionalization

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

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

situation that occurs when the entrepreneur does nearly everything in the simplest way possible

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

entrepreneurial alertness

special set of skills that help entrepreneurs identify good opportunities, ability to notice things that have been overlooked

incremental strategy

taking an idea and offering a way to do something slightly better than it is done presently

volatility

the frequency of business starts and stops

permanence

the impression of long-term continuity a business gives others

creative destruction

the way that newly created goods, services, or firms can hurt existing goods, services, or firms

role conflict

when people take more than one role and the responsibilities of those roles make different demands on the people

PICS model of entrepreneurship

Public Independent Corporate Social

professionalization

extent to which a firm meets or exceeds the standard business practices for its industry

career

lifelong series of jobs or occupations

covenants

limitations imposed on your property by your neighborhood group

reciprocal links

live connection to a different web site, which in turn displays a similar link to the first website

Harvest entrepreneurs

owners with an exit plan. work first in order to play later, they build companies, harvest the money, then make another company

licensee

the person or firm which is obtaining the rights

caveat emptor

Latin for "Let the buyer beware"

Mutuality

action of each person helping the other

external environment

everything outside the firm's boundary

certification

examination based acknowledgement that the firm is owned and operated as specified

multichannel marketing

use of several different channels to reach your customers, for example, a web site, direct mail, and traditional retailing

legitimacy

when people think the firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors

self employed

working for yourself

part time self employment

working for yourself for 35 or fewer hours a week

full time self employment

working for yourself for over 35 hours a week