Chapter 3

Spiral "helical" Entrepreneurs

Alternate periods of growth and stability which are driven by personal or family needs Driven by a need to balance family and business The endgame strategy is scaling down the business

Minimalized

Entrepreneur figures that "good enough" is all that is necessary to keep the business going No systematic accounting Little recordkeeping

Second Career entrekpreneurs

Get advice Take control over life Networking Keep personal finances out of the business

Classic Profile

Loner, socially isolated Hard worker Fast learner Risk-taker seeking wealth

Discrimination of Financing

Minority applicants were denied at twice the rate of whites.

Entrepreneurial Teams

Most teams are family related More than half of teams are spouses or life partners working together

Harvest Entrepreneurs

Owners with an exit plan Work first in order to play later Build one company at a time, sell it, enjoy the proceeds, and then start another

Key Business Functions

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

Industry-Specific Knowledge

activities, skills, and knowledge, specific to businesses in an industry

How many Standard & Poor's are family owned and managed?

1/3 of the Standard & Poor's 500 are family owned and managed

Minority-owned businesses represent how much of all United States businesses.

11%

of businesses equally owned by men and women

18%

of all businesses are majority owned by women

30%

What % of US businesses are small family businesses?

39%

What is the term for the process of intergenerational transfer of a business?

Succession

Resource Competencies include...

Time, information, location, financing, raw materials, expertise

What is the best action during role conflict?

Whenever possible, make decisions based on business necessities.

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

Certification

an examination base acknowledgement that the firm is owned and operated as specified

Women-owned businesses

are one of the fastest-growing sectors of all United States businesses

Lack of clear transition plan is the ..

death knell

Competencies

forms of business-related expertise

Specialized

founders or owners are passionate about one or two of the key business functions, Satisfied if other activities are no worse than other firms in the market

Set asides

government contracting funds earmarked for particular kinds of firms, such as minority- or women-owned firms

Growth Entrepreneurs

lifetime owners whose goal is major success If they top out with one business, they'll start another growth-oriented company,

Time management

organizing process to help make the most efficient use of the day List, 123 Prioritize, Delegate, Repeat, Strategize

Habitual Entrepreneurs

owners for a lifetime, sometimes in one business, sometimes across several firms No succession plan Figure to keep working until they can no longer continue

Late career entrepreneurs

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

Occasional Entrepreneurs

people who generally have another primary job Classic part-time entrepreneur Seasonal basis (doing taxes, or making Christmas wreaths)

Determination Competencies

skill 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

Majority of new businesses have a

team of two or more co-owners

Resource Competencies

the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business

Professionalization

the extent to which a firm meets or exceeds the standard business practices for its industry Expert, specialized, minimalized

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

Expert Businesses

those which you notice everything seems to be done in the best way possible firm has exceeded the standard business practices of the industry

Basic Business Competency

understanding the organizational and business processes of a firm