BUS 165 Test 1
Standard business practice
a business action that has been widely adopted within an industry or occupation
Independent small business
a business owned by an individual or small group
Owner-managed firm
a business run by the individual who owns it
Family business
a firm in which one family owns a majority stake and is involved in the daily management of the business
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
Efficiency-driven economy
a nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity (i.e., efficiency) is a major goal.
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
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
Small Business Administration
a part of the US government that provides support and advocacy for small businesses
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, etc.
Heir
a person who becomes an owner through inheriting or being given a stake in a family business
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
Corridor principle
a theory in entrepreneurship and occupational theory that says that as you start pursuing one line of work or opportunity you will encounter other opportunities
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 (aka production), accounting, finance, and HR
Industry-specific knowledge
activities, knowledge, and skills specific to businesses in a particular industry
Sustainable entrepreneurship
an approach to operating a firm or a line of business that 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
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
Certification
an examination-based acknowledgement that the firm is owned and operated as specified
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
Green entrepreneurship
another term for sustainable entrepreneurship take from the popular belief that green is the color of a healthy environment, as in forests or fields
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
Four focuses of entrepreneurship
creation, customers, efficiency, and innovation
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-based 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
Set-asides
government contracting funds that are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like
Small business
involves 1-50 people and has its owner managing the business on a day-to-day basis
Social entrepreneurship
involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations that invest significant profits in charitable activities
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
Innovativeness
refers to how important a role new ideas, products, services, processes, or markets play in an organization
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 profitable and sustainable business
Corporate entrepreneurship
takes place in existing businesses around new products, services, or markets
Crowdsourcing
techniques often based on Internet services to get opinions or ideas through the collecting involvement of others
Flexibility rewards
the ability of business owners to structure life in the way that suits their needs best
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
Perseverance
the ability to stick with some activity even when it takes a long time and its outcome is not immediately known
Perseverance
the behavior of continued effort to achieve a goal
Mindshare
the degree of attention your target market pays to your idea or organization
Innovation
the entrepreneurial focus that looks at a new thing or a new way of doing things
Creation
the entrepreneurial focus that looks at the making of new entities
Customer-focus
the entrepreneurial focus that refers to being in-tune with one's market
Efficiency
the entrepreneurial focus that refers to doing the most work with the fewest resources
Professionalization
the extent to which a firm meets or exceeds the standard business practices for its industry
Emergence
the first stage of the small business cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business
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 parent and boss, and the different responsibilities make different demands on them
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
Business life cycle
the sequence or pattern of developmental stages any business goes through during its life span
Self-employed
working for yourself
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
Self-efficacy
a person's belief in his or her ability to achieve a goal
Cognition
a person's way of perceiving and thinking about his or her experience
Main street business
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 business or "Wall Street" businesses
Franchise
a prepackaged business bought, rented, or leased from a company called a franchisor
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 and challenges within a company that demonstrate how things get done
Expert business professionalism
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 professionalism
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, and pursues those functions in a professional manner
Minimalized business professionalism
a situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than in a professional way
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
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
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
Founders
people who create or start new businesses
Buyers
people who purchase an existing business
Slack resources
profits that are available to be used to satisfy the preferences of the owner in how the business is run
Independent entrepreneurship
the form of entrepreneurship in which a person or group owns a for-profit business
E-commerce
the general term for conducting business on the Internet
Small and medium enterprise (SME)
the international term for small business
Trade magazines
the magazines that target specific industries and professions
Income rewards
the money made by owning one's own business
Unicorn
the most successful high-growth ventures, those with a valuation of $1 billion or more
Resource maturity
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 a takeoff stage following the success stage, the resource maturity stage occurs after takeoff
Time management
the organizing process to help make the most efficient use of the day
Internal Environment
the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm
Succession
the process of intergenerational transfer of a business
Liability of newness
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
Forms of entrepreneurship
the settings in which the entrepreneurial effort takes place
Takeoff
the 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
Environment
the sum of all the forces outside the firm or entrepreneur
Goods or services
the tangible things (goods) or intangible commodities (services) created for sale
Success
the third stage of the business life cycle marked by the firm being established in its market, operation, and finances
Occupations
the type of activity a person does regularly for pay
Action
the visible behavior a person takes
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
Growth rewards
what people get from facing and beating challenges