Entrepreneurship Small Business Exam 1 (Ch.2)

Late career entrepreneurs

"second career entrepreneurs," people who begin their businesses after having retired or resigned from work in corporations at age 50 or later.

What are the three major challenges facing the family business...?

1) Role conflict '2)Time management 3) Succession

How can we help meet the challenges of schedule overload?

1) list 2) 123 prioritize 3) delegate 4) repeat 5) strategize

What are the two challenges that family businesses deal with?

1) role conflict 2)Succession

What are the five ways to plan... ?

1)Comprehensive planners 2) Critical-point planners 3) Opportunistic planners 4) Reactive planners 5)habit-driven planners

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.

cognition

A persons way of perceiving and thinking about his or her experience.

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, financing, or human resources.

Minimalized business professionalization

A situation that occurs when the entrepreneur does nearly everything in the simplest way possible.

Key business functions

Activities common to all businesses such as sales, operations, accounting, financing and human resources.

Industry-specific knowledge

Activities, knowledge, and skills specific to businesses in a particular industry.

Promotion focus

An entrepreneur's attention to maximizing gains and pursing 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.

comprehensive planners

Entrepreneurs who develop long-range plans for all aspects of the business

Competencies

Forms of business-related expertise.

Determination competencies

Skills identified with the energy and focus needed to bring a business into existence.

Perseverance

The ability to stick with some activity even when it take a long time and its outcome is not immediately known.

Professionalization

The extent to which a firm meets or exceeds the standard business practices for its industry.

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.

time management

The organizing process to help make the most efficient use if the day .

Succession

The process of intergenerational transfer of a business.

What can couple teams benefit from?

Trust and financial flexibility

The majority of businesses are started by __?

teams

What is a major economic force, employing 58% of America's total workforce?

family businesses

What are the typical problems of teams?

lack of agreement, separating work and family issues, and handling endings

reactive planners

Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take.

What is the major challenge that women and minority- owned businesses face?

Gaining access to opportunity

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.

What are the challenges facing late career entrepreneurs?

Having to do everything themselves, loss of confidence, and using too much of their personal money too soon in the business.

What two types of businesses are growing at rates faster than other types of businesses?

Women-owned and minority-owned businesses

How is access gained?

through networking and set-asides.

Critical-point planners

Entrepreneurs who develop plans focused on the most important aspects of the business first.

Habit-driven planners

Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines.

Opportunistic planners

Entrepreneurs who star with a goal instead of a plan and look for opportunities to achieve it.

Role conflict breeds what other problem?

Shortage of time

Resources 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.

Do married couples and nonfamily partnerships face many of the same problems and solutions?

YES

What kind of businesses are one of the major forms of small business?

family businesses

actions

The visible behavior a person takes.

What are the five P's of entrepreneurial behavior ?

1)Passion 2)perseverance 3)Promotion/Prevention 4)Planning 5)Professionalization

opportunity competencies

Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business.

_____ or ____ are the most common form of teams.

Spouses or life partners