entrep 3-4

Social Networking

-a way to work trust, reciprocity, and long-term relationships into your day-to-day business operations. it's a way to build your company's expertise

1. Building Legitimacy 2. Developing Social network 3. Handling a Crisis 4. Achieving Sustainability 5. Making Ethical decisions

5 Skills for MANAGING RELATIONS TO THE ENVIRONMENT

Imitative strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing.

universities and government agencies

Both develop a tremendous range of new technologies or refinements of existing technologies, but never do anything with them.

1.Looking for trends and future-looking articles in the trade and professional press. 2.Asking your customers, suppliers, banker, attorney, and accountants what they see on the horizon for business in general. 3.Keeping notes on the things that bother you about the way work is done now. 4.Subscribing to a couple of magazines or newsletters.

ENVIRONMENTAL SCANNING FOR SMALL BUSINESSES - There are several low-cost and relatively fast ways to monitor the environment.

1. the overall business idea, 2. the product/service, 3. the industry and market, 4. financial projections (profitability), and the 5. plan for future action.

Feasibility studies consist of careful investigation of five primary areas:

crisis

It is a situation that poses a major problem for the business or its people, in which the survival of the business is at stake, and immediate action is necessary.

adaptation

It's a popular innovation strategy that can be just as effective, and much more likely in the real world, than business opportunities that are the result of radical innovations such as inventions.

Alex Bruton's RBI screen "Really Big Idea".

One of the simplest and fastest ways to screen ideas

SCAMPER

One tool you can use to help you identify new opportunities. It is based on the work of Alex Osborne, a pioneer in the field of creativity, who first coined the word brainstorming.

1.Imitative strategy. 2.Incremental strategy. 3.Radical innovation strategy.

Opportunity Strategies

Rearrange or reverse

Overall, you have to ask yourself this question: How can I change, reorder, or reverse the product or problem?

1.People: Who are you? 2.Offering: What are you offering? 3.Customer: Whom are you offering it to? 4.Value proposition: Why do they care? 5.Distinctive competencies: Do you have any key or core science/technology or feature?

RBI screen initial assessments (called screens) of prospective business ideas based on five questions.

Radical innovation strategy

Rejecting existing ideas, and presenting a way to do things differently.

1.Substitute 2.Combine 3.Adapt 5. Put to other uses 6. Eliminate 7. Rearrange or reverse

SCAMPER stands for the following:

Eliminate

Search for opportunities that arise when you get rid of something or stop doing something

1. Internal Environment 2. External Environment

THE ELEMENTS OF THE SMALL BUSINESS ENVIRONMENT

Magnify or modify

Taking an existing product and changing its appearance or adding more features

Incremental strategy

Taking an idea and offering a way to do something slightly better than it is done presently.

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.

opportunity recognition

The search and capture of new ideas. Which researchers believe might be the most basic and important entrepreneurial behavior

BRIE model

These can include information on how to do the business or whom to sell to, funding to run the business, space for the business, and raw materials for the business to use to make goods or deliver services.

royalty

These payments can consist of an upfront or annual flat licensing fee, which is a payment per item sold.

Adapt

Think about what could be adapted from products or services that already exist. It's a popular innovation strategy that can be just as effective, and much more likely in the real world, than business opportunities that are the result of radical innovations such as inventions.

Combine

Think of possible combinations you can make that result in something entirely different.

Put to other uses

Think of ways you could generate a high number of opportunities for your product or service beyond what it is traditionally used for.

Substitute

Think of what you might substitute for something else to form a new idea.

1.Read magazines or trade journals outside your area. 2.Invite someone you never included before to a meeting 3.Have a "scan the environment" day. 4.Try a mini-internship. 5.Put yourself in their shoes the customer and ask them what frustrates them most. 6.Redesign your work environment.

WAYS TO KEEP ON BEING CREATIVE

opportunity

actions that you do or imagine doing in order to achieve some kind of business outcome

1.Define: Define the moral problem. 2.Generate: alternatives that could meet the ethical, legal, and economic goals every business must balance. 3.Implement: Pick the best alternative you and your business can live with and implement it.

approach30 to small business, making ethical decisions involves three steps:

Boostrapping

as entrepreneurs face resource constraints, they often learn to get by with less, or substitute a more readily obtained resource, or ask to borrow, rent, or trade for the resource, techniques and a part of the culture of most successful start-up.

Ethics

comprise a system of values people use to determine whether actions are right or wrong.

External Environment

consists of everything outside the firm's boundary.

Internal Environment

consists of those people inside the boundary

1.Identifying the wrong problem. 2.Judging ideas too quickly. 3.Stopping with the first good idea. 4.Failing to act:. 5.Obeying rules that don't exist.

five major pitfalls that business owners can become victim to when trying to become more innovative.

license

is a legal agreement granting you rights to use a particular piece of intellectual property

Sustainable Entrepreneurship

is an approach to the operation of the firm, which identifies or creates and then exploits opportunities to make a profit in a manner that minimizes the depletion of natural resources, maximizes the use of recycled material, improves the environment.

social network

is the entrepreneur's relationships and contacts with others.

Environment

is the sum of all the forces outside the firm or entrepreneur.

ethical dilemma

it occurs when a person's values are in conflict, making it unclear whether a decision we're thinking about making is right or not.

PROFIT 1.Property/Physical: Buildings, land, equipment, raw materials 2.Relational: Customers, networks, distributors, social capital 3.Organizational: Systems, structures, operational procedures 4.Financial: Money, lines of credit, crowdfunding, bartering 5.Intellectual: Employees, contractors, and the skills the business need. 6.Technological: Patents, trademarks, ideas, copyrights.

key to identifying resources

Networking

means small business owners interacting with others in order to build relationships useful to the business.

LEGITIMACY

means that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors or competitors.

Entrepreneurial alertness

means that entrepreneurs have a special set of observational and thinking skills that helps them identify good opportunities.

General Environment

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.

Task Environment

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.

Green Entrepreneurship

refers to a special subset of entrepreneurship that aims at creating and implementing solutions to environmental problems and to promote social change so that the environment is not harmed.

1.Admit you're in trouble—quickly. 2.Get to the scene as soon as possible. 3.Communicate facts you know (and those you don't). 4.Have one person serve as the firm's spokesperson. 5.Separate crisis management from the everyday management of the firm. 6.Deal with the crisis quickly.

six steps to follow can be readily adapted when handling a crisis.

Caveat emptor is Latin for "Let the buyer beware"

the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods.

Mutuality

the idea and action of each person helping the other

1. Based on your people 2. Based on your product 3. Based on your organization

three general forms of legitimacy that you can develop

1. the idea cannot be economically made into a product or service; 2. the resulting product or service works, but does not appeal to a large enough market to make the effort profitable; and 3. the product or service works, has a market, and could be profitable, but you need to get additional people, funding, or other resources to make the idea into a business.

traditional problems facing new ideas are

LaRue Hosmer

was initially a professor of entrepreneurship who came from a family logging business. He later turned his eye toward the challenge of making ethical decisions in business.