MGT491 Exam 1

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.

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.

entrepreneurial ecosystem

A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of start-up businesses. The components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations.

comprehensive planners

Develop long range plans for all aspects of the business

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.

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.

The Five Ps of Entrepreneurial Behavior

Passion, Perseverance, Promotion/Prevention focus, Planning style, Professionalization

second career entrepreneurs

People who begin their businesses after having left, retired, or resigned from work. These can include veterans of the armed forces and civilians from a broad range of industries.

internal environment

The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

seven key strategies of the entrepreneurial way

`1. if you don't succeed the first time try try again 2. scale back 3. bird in the hand (make best use of resources you have) 4. pivot (as you start pursuing one line of work you will encounter other opps.) 5.take it on the road (sometimes the place you live isnt the best market for your product so try another market) 6.ask for help 7. plan to earn

serial entrepreneur

a person who opens multiple businesses throughout his or her career

entrepreneur

a person who owns or starts an organization such as a business

virtual instant global entrepreneurship

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

organizational culture

a set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems

passion

an intense positive feeling an entrepreneur has toward the business of the idea behind the business

customer focus

being in tune with your market

Opportunity-driven entrepreneurship

creating a firm to improve one's income or a product or service

Small Business

involves 1-50 people and has its owner managing the business on a day-to-day basis

basic methods of time management

list, prioritize, delegate, repeat, strategize

creation

looks at the making of new entities

external relations

managing relations with the environment -build legitimacy -develop social network -handling a crisis -acheive sustainability -make ethical decisions

exchange

moving resources/products/services in exchange for money

resource maturity

relatively stable or slowly rising sales and profits over several years. in firm that has a takeoff stage following the success stage, the resource maturity occurs after takeoff

business life cycle

sequence or pattern of stages any business goes through during its life span

self-efficacy

the belief in yourself

Corporate Entrepreneurship

the form of entrepreneurship which takes place in existing businesses around new products, services, or markets (Apple's iphone)

e-commerce

the general term for conducting business on the internet

emergence

the stage in which a person thinks about and takes actions toward starting a firm

environment

the sum of all the forces outside the firm or entrepreneur

Four Growth Strategies

1. lifestyle or part time firms 2. traditional small businesses 3. high performing small businesses 4. high growth ventures

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.

standard business practice

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

family business

a firm in which one family owns a majority stake and is involved in the daily management of the business

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

factor driven economies

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

innovation driven economies

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

innovation

a new thing or a new way of doing things

cognition

a persons way of looking at and thinking about oneself and their world

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

Minimalized business professionalization

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

industry specific knowledge

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

boundary

creating a place for your business - in location and in peoples minds

Independent Entrepreneurship

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

competencies

forms of business related expertise

Lifestyle or part-time firm

have sales of 25,000 or less which provides for an income but not enough to live on -small business primarily intended to provide partial or subsistence financial support for the existing lifestyle of the owner most often through operations that fir the owner schedule and way of working

existence

having the business in operation but not yet stable in terms of markets, operations, or finances

opportunity competencies

skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business

high growth ventures

start small but are intended to grow rapidly

flexibility rewards

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

perserverance

the ability to stick with some activity even when it takes a long time to reach a goal

external environment

the forces, institutions and people outside the boundary of the firm

role conflict

the kind of problem that arises when people have multiple responsibilities such as a parent and a boss and the different respobilities make different demands on them

trade magazines

the magazines that target specific industries and professions

Income rewards

the money made by owning one's own business

actions

the visible behavior a person takes

myths about small businesses

1. there's not enough financing 2. you can't start businesses during a recession 3. to make profits you need to make something 4. if you fail you can never try again 5. students dont have the skills to start a business 6. ninety percent of all new businesses fail within 2 years

CSI entrepreneurship

Acronym for the three forms of entrepreneurship, corporate, social, and independent

key business functions

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

sustainable entrepreneurship

an approach to operating a firm or a line of business which 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

four elements needed to get your business started

boundary, resources, intention, and exchange

5 Planning Styles

comprehensive, critical point, opportunistic, reactive, habit based

Necessity-driven entrepreneurship

creating a firm as an alternative to unemployment

four focuses of entrepreneurship

creation, customer focus, efficiency, innovation

habit-based planners

do not plan, preferring to let all actions be dictated by their routines

efficiency

doing the most work with the fewest resources

sequence of stages

emergence, existence, survival, success, and resource maturity

critical point planners

entrepreneurs who develop plans focused on the most important aspect of the business first

opportunistic planners

entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it

Universally mentioned rewards

flexibility, income, growth

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

crowdfunding

funding a business online through the collective involvement of others who provide donations, loans, or investments

success

marked by the firm being established in its market, operation and finances

what small business provide for the economy

new jobs, innovations, new opportunities,

takeoff

occurs after success stage for a small percentage of businesses- rapid growth

organizational identity

part of the BRIE model; composed of the name, description, and distinctive elements of a firm such as trademarks, uniforms, logos, characters, and stories

6 key elements of entreprenerurial culture

passion for mission, passion for the team, passion for the customer, passion for innovation, passion for fairness

succession

process of intergenerational trasfer of a business

slack resources

profits available to be used to satisfy the preferences of the owner in how the business is run (flexibility)

promotion-prevention focus

promotion focus: entrepreneurs attention to maximizing gains and pursuing opportunites likely to lead to gains prevention focus: attention to minimizing losses, with a bias toward inaction or protective action to prevent

scanning ability to find resources you need from the environment to build your business PROFIT

property/phisical: buildings land equipment relational: customers, networks, distributors organizational: systems, structures, operational procedures financial: money, lines of credit cowdfunding intellectual: employees, contractors, advisers technological: patents, trademarks, ideas

certification

proving that the business is truly owned by a woman or minority

rarely mentioned rewards

recognition, admiration, power

innovativeness

refers to how important a role new ideas, products, services, processes, or markets play in an organization

liabilities of newness

set of risks faced by firms early in their life cycles that comes from lack of knowledge by the owners about the business they are in and by customers about the new business

determination competencies

skills identified with the energy and focus needed to bring a business into existence

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

Legitimacy

the belief that a firm is worthy of consideration or doing business with

mindshare

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

intention

the desire to start a business

Professionalization

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

resources

the money, product, knowledge that make up the business

occupation

the type of activity a person does regularly for pay

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 cost of doing business

Reactive planners

wait for cues from the environment to determine what actions to take

occasionally mentioned rewards

wealth and to develop and idea for a product

growth rewards

what people get from facing and beating challenges

specialized business professionalization

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