Chapter 2
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 HR.
Key Business Functions
Activities common to all businesses such as sales, operations, accounting, finance, and HR.
Industry-Specific Knowledge
Activities, knowledge, and skills specific to businesses in particular industry
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 protection action to prevent loss
Competencies
Forms of business related expertise
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.
Passion
Intense positive feeling an entrepreneur has toward the business or the idea behind the business
Five P's of Entrepreneurial Behavior
Passion Perserverance Promotion/Prevention Focus Planning Style Professionalization
Late Career Entrepreneurs
People who begin their businesses after having retired or resigned form work in corporations at age 50 or older
Perseverance
The ability to stick with some activity even when it takes a long time and its outcome is not immediately known
Comprehensive Planners
Those who develop long-range plans for all aspects of the business
Critical-Point Planners
Those who develop plans focused on the most important aspect of the business first
Habit-Driven Planners
Those who do not plan, preferring to let all actions be dictated by their routines
Opportunistic Planners
Those who start with a goal instead of a plan and look for opportunities to achieve it
Reactive Planners
Those with a passive approach, who wait for cues from the environment to determine what actions to take
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, and expertise
Certification
an examination based acknowledgement that the firm is owned and operated as specified
Succession
the process of intergenerational transfer of a business
Standard Business Practice
A business action that has been widely adopted within an industry or occupation
Minimalized Business Professionalization
A situation that occurs when the entrepreneur does nearly everything in the simplest way possible
Family Business
firm in which one family owns a majority stake and is involved in the daily management of the business
role conflict
problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them
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