Business 292 Test Review 1
Know the characteristics/background/stats of a small business
- involves 1-50 people and has its owner managing the business on a day-to-day basis -Believe that you can do this -Planning + Action = Success -Help Helps -Do well. Do Good. -Self-efficacy A person's belief in his or her ability to achieve a goal.
Know basic business competency
Basic business competency: understanding the organizational and business processes of a firm
What is bootstrapping?
Bootstrapping: Using low-cost or free techniques to minimize your cost of doing business
Know corporate entrepreneurship
Corporate entrepreneurship: a form of entrepreneurship which takes place in existing businesses around new products, services or markets. It focuses on customer-focus and innovation
Know the characteristics/background/stats of high-growth venture business
High-Growth Venture: small businesses designed for the purpose of achieving high growth and rapid profit increases. Often, to achieve profit and growth objectives, these businesses develop products and promotion strategies with a pool of investors providing working capital.
Know the difference among licensee, licensor, and royalty
License legal agreement granting you rights to use a particular piece of intellectual property Licensee, licensor Royalty payment based on the number or value of licensed items sold
Know organizational identity
Organizational identity: composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories part of the BRIE model
Know and review all the components of a second career entrepreneur. Specifically, the challenges
Second career entrepreneurs: People who begin their businesses after having left, retired, or resigned from work. Can include veterans of the armed forces and civilians from a broad range of industries.
Know all the components of social capital (numerous questions on this topic)
Social capital: Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur.
Know social entrepreneurship
Social entrepreneurship: a form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities 31
According to the textbook, when opening up a business which industry do women typically choose and which industry do men typically choose?
Women: Out of Home/ Beauty Men:
Know SCAMPER and all the components (numerous questions on this topic)
SCAMPER a creativity tool that provides cues to trigger new ideas for your business Substitute what might substitute for something else to form an idea Idea Trigger: What opportunities can you think of that come as a result of substituting or replacing something that already exist? Combine possible combinations that result in something completely different Books, coffee, and music: Barnes & Noble, Tattered Cover Book Stores Idea Trigger: What separate products, services, or whole business can you put together to create another distinct business? Magnify (or Modify) taking an existing product and changing its appearance or adding more features can also cue you to minimize something Idea Trigger: What could I make more noticeable or dramatic, or different in some way from my competitors? Put to other uses Think of ways you could generate a high number of opportunities for your product or service Idea Trigger: Suppose you learned that all the traditional uses for your product had disappeared; what other uses might there be? -Eliminate search for opportunities that arise when you get rid of something or stop doing something Idea Trigger: What could I get rid of or reduce that would eliminate something my customer has to do? -Rearrange (or reverse) Magnetic Poetry example Idea Trigger: What can you rearrange or reorder in the way your product or service appears?
Know the difference among imitative, incremental, and radical innovation strategy
-Imitative strategy: an overall strategic approach in which the entrepreneur does more or less what others are already doing -Incremental strategy: taking an idea and offering a way to do something better than it is done presently -Radical innovation strategy: Rejecting existing ideas, and presenting a way to do things differently
What are resource, opportunity, and determination competencies?
-Resource competencies: the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business Time, information, location, financing, raw materials, expertise -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
Know and review all the components (including pros & cons, role conflict, succession, time management) of a family business
-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 Whenever possible, make decisions based on business necessities. -Time management: organizing process to help make the most efficient use of the day. -Succession: the process of intergenerational transfer of a business Lack of clear transition plan is the death knell
Know entrepreneurial alertness
Entrepreneurial alertness a special set of observational and thinking skills that help entrepreneurs identify good opportunities the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities
Know efficiency-drive and innovation driven economies
-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. -Innovation-driven economy: A nation there 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. 26
Know difference between all the types of small business owners (self-employed/buyer, founder, heir, and franchise)
-Self-employed: Working for yourself. -Founders :People who create or start new businesses. -Franchise: A prepackaged business bought, rented, or leased from a company called a franchisor . -Heir: A person who becomes an owner through inheriting or being given a stake in a family business. -Buyers : People who purchase an existing business.
Know what is a feasibility study
-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. -Feasibility studies consist of careful investigation of five primary areas: the overall business idea the product/service the industry and market financial projections (profitability) the plan for future action. -Target market refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors. can refer to individuals or market groups called segments. also called serviceable obtainable market, or SOM
Know the BRIE model and the specific and examples of each (numerous questions on this topic)
-The BRIE model is a way for an entrepreneur to think about the main activities that are required to get a business started. It involves setting a checklist of tasks that you should undertake for each step. -BOUNDARY: is all about creating a place for your business. This doesn't only mean a physical location and headquarters, but also establishing a place for the company in people's minds. ∙Example: For example, if you have a company called Aztec Mobile Communications, then you could set up a domain name with Aztec.com or Aztecmobile.com. Print business cards and distributing them at every possible place where potential clients will see them. -RESOURCES: The resources step refers to the items that the business possesses to make it function. ∙ Example: Human Resources, Informational Resources - INTENTION: Refers to the desire of the entrepreneur to start a business and make it into a success. -EXCHANGE: Moving resources/products/ services in exchange for money
Know all the components in the internal environment, external (task & general), and entrepreneurial ecosystem
-Internal environment: The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm. -External environment: The forces, institutions and people (i.e., the rest of the world) outside the boundary of the firm. -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. -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. -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.
Know the firm growth strategies (lifestyle/part-time, traditional, high-performing, high-growth venture)
-Lifestyle or Part-time: 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. -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.