MGMT 470: Ch. 2 - Small Business Entrepreneurs: Characteristics & Competencies
~___% of all businesses are majority-owned by women
30%
•Women-owned businesses are a large sector of U.S. firms, yet they account for only _____% of national small business REVENUE.
4.3%
Challenge of ______: Refers to the simplest form of discrimination; When women or minority groups are simply excluded from the opportunities offered to firms owned by white males
Access
The _______ ________ _______: The sequence or pattern of developmental stages any business goes through during its life span
Business Life Cycle
Strategy Formulation _______ _______: - Central, but participative - Creates a thinking process - compromise btw strategic engineering & anarchy
Entrepreneurial Execution
The visible behavior a person takes
action
(4) Major Approaches to the Study of Entrepreneurship: (Pt. 2) No single factor is entirely responsible for the supply of successful entrepreneurs This is the ________ Approach
composite
(4) Major Approaches to the Study of Entrepreneurship: Entrepreneurial behavior is an outcome of the interplay of multiple social, cultural, economic, political and psychological factors This is the ________ Approach
composite
(5) Planning Styles of Entrepreneurs: Entrepreneurs who develop long-range plans for all aspects of the business These ppl are _______ planners.
comprehensive
A set of beliefs, knowledge, and thought processes that drives entrepreneurial behavior The _______ ________
entrepreneurial mindset
The ______ ______ is a set of skills that enable people to: - identify and make the most of opportunities - overcome and learn from setbacks - succeed in a variety of settings
entrepreneurial mindset
(4) Steps of the General Business Process: Making it real; Raise capital ($)
entrepreneurship
(4) The BRIE Model: making sales
exchange
(4) Steps of the General Business Process: Creating the idea; Proof of concept
innovation
_______ ________ _________: Activities common to all businesses such as sales, operations (production), accounting, finance, and HR
key business functions
The _______ ___ ________: The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business
liability of newness
(6) Key Elements of Entrepreneurial Culture: The team needs to believe in the business, its goals, products, and services Passion for the _______.
mission
(5) Aspects of Behavior (The 5 Ps): An intense positive feeling an entrepreneur has toward the business or the idea behind the business
passion
(4) Pillars of a Venture: 1. ________ 2. _______ 3. _______ 4. _______
people, assets, information, time
(5) Aspects of Behavior (The 5 Ps): The extent to which a firm meets or exceeds the standard business practices for its industry - Most entrepreneurs do at least one thing BETTER than avg.
professionalization
Promotion-Prevention Focus An entrepreneur's attention to maximizing gains and pursuing opportunities likely to lead to gains This is ________ focus.
promotion
An individual's belief in his or her capacity to execute behaviors necessary to produce specific performance attainments
self-efficacy
__________ _________: Profits that are available to be used to satisfy the preferences of the owner in how the business is run
slack resources
(4) Steps to Entrepreneurial Execution: 1. _______ _______ 2. _______ _______ 3. _______ _______ & _______ 4. A culture of ______ & ______
strategy formulation, process management, performance measuring & reporting, experimentation & learning
Firms with a majority family ownership are a family business and they employ ____% of America's total workforce.
58%
Strategy Formulation Strategic ________: - Totally bottom-up - Out of control & unrealistic expectations
anarchy
(4) The BRIE Model: Uses key business functions to create the boundary
boundary
(4) The BRIE Model: 1. _______ 2. _______ 3. _______ 4. _______
boundary, resources, intention, exchange
(2) Solutions for Women & Minority-Owned Businesses: An examination-based acknowledgment that the firm is owned and operated as specified
certification
Passion is displayed in (3) ways: 1. By looking at the _______ of the business in a _______ way 2. By being persistently ______ on the business 3. By being _____ by the _____ & concerns of the business
challenges, creative, focused, absorbed, tasks
(4) Steps to Successful Execution of Strategy: 1. Set ______ _______ 2. Collect & analyze _____ 3. Keep a ______ to meetings 4. ______ the strategy
clear priorities, data, rhythm, evaluate
any specific types of business-related expertise
competencies
(5) Planning Styles of Entrepreneurs: 1. ________ planners 2. ________ planners 3. ________ planners 4. ________ planners 5. ________ planners
comprehensive, critical-point, opportunistic, reactive, habit-based
(5) Stages of the Small Firm Life Cycle: The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operation, or finances - 2nd riskiest period !!!
existence
(5) Planning Styles of Entrepreneurs: Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines These ppl are _______ planners.
habit-based
(4) Steps of the General Business Process: - The process of thinking and getting creative - Coming up with ideas
ideation
_________-_________ _________: Activities, knowledge, and skills specific to businesses in a particular industry
industry-specific knowledge
(6) Key Elements of Entrepreneurial Culture: If the team is always thinking about making things better for customers, one another, the firm, and its offering, it will mean the best days are always ahead of all Passion for _______.
innovation
(4) The BRIE Model: Reflects determination, or determination competencies, shown through focus and choices
intention
(6) Key Elements of Entrepreneurial Culture: 1. Passion for the _______ 2. Passion for the _______ 3. Passion for the _______ 4. Passion for _______ 5. Passion for _______
mission, team, customer, innovation, fairness
Entrepreneurial Execution harnesses the intellect & passion for employees that support: - ________ - ________ - _______ ________
mission, vision, core competencies
(5) Aspects of Behavior that most successful entrepreneurs display = The Five Ps of Entrepreneurial Behavior: 1. ________ 2. ________ 3. ________-________ ________ 4. ________ style 5. ________
passion, perseverance, promotion-prevention focus, planning, professionalization
(5) Aspects of Behavior (The 5 Ps): The ability to stick with some activity even when it takes a long time and its outcome is not immediately known
perseverance
(4) Major Approaches to the Study of Entrepreneurship: Deals with the issues involved in relationships between entrepreneurship development and the state particularly in the context of the role of the latter in the development of entrepreneurs This is the ________ Approach
political
_______ Competencies: The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business Ex: time, information, location, financing, raw materials, and expertise - Resources
resource
(4) The BRIE Model: Lead to specific resource competencies, or the ability to procure raw materials
resources
(2) Solutions for Women & Minority-Owned Businesses: 1. ____-_____ 2. _______
set-asides, certification
(4) Major Approaches to the Study of Entrepreneurship: 1. ________ Approach 2. ________ Approach 3. ________ Approach 4. ________ Approach
sociological approach, political, psychological, composite
______ stage firms show: - consistently growing financial performance, with slowly rising sales - Firms at this stage develop the information, skills, and routines to grow the business's profits
success
2nd Challenge for Family Businesses: The process of intergenerational transfer of a business
succession
(5) Stages of the Small Firm Life Cycle: 1. __________ 2. __________ 3. __________ 4. __________ __________ 5. __________
emergence, existence, success, resource maturity, takeoff
Strategy Formulation Strategic ________: - Senior mgmt. Exercise - Often utopia, NOT reality
engineering
(5) Stages of the Small Firm Life Cycle: The third stage of the business life cycle marked by the firm being established in its market, operation, and finances
success
A person's way of perceiving and thinking about his or her experience
cognition
(4) Steps of the General Business Process: The exchange; The product for $ or bartering of goods
commerce
(4) Advantages to a Family Business: 1. More effective _______ 2. Easier ______-______ 3. Strong ______ ______ 4. Major source of ______
communication, decision-making, business culture, funding
(5) Planning Styles of Entrepreneurs: Entrepreneurs who develop plans focused on the most important aspect of the business first These ppl are _______ planners.
critical-point
(6) Key Elements of Entrepreneurial Culture: A team that is always thinking about the customer and how to make their experience better will, in turn, make customers passionate about the company Passion for the _______.
customer
________ Competencies: Skills identified with the energy and focus needed to bring a business into existence - Intention
determination
When women and minority-owned firms are not given the same access to funds or contracting opportunities that white male-owned firms are given
discrimination in financing
(5) Stages of the Small Firm Life Cycle: - The 1st stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business - The riskiest period !!!
emergence
(3) Types of Strategy Formulation: 1. Strategic _________ 2. Strategic _________ 3. ________ ________
engineering, anarchy, entrepreneurial execution
(3) Levels of Professionalization: 1. _________ Business Professionalization 2. _________ Business Professionalization 3. _________ Business Professionalization
expert, specialized, minimalized
(6) Key Elements of Entrepreneurial Culture: An organization seeks to always be fair which calls for teams and individuals who emulate this Passion for ________.
fairness
A _______ _______: A firm in which one family owns a majority stake and is involved in the daily management of the business
family business
A Culture of Experimentation & Learning: Test, retest ______, ______, _______
move, act, communicate
Is there ONE pattern of entrepreneurial behavior or entrepreneurial type?
no
(5) Planning Styles of Entrepreneurs: Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it These ppl are _______ planners.
opportunistic
_______ Competencies: Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business - Exchange
opportunity
A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done
organizational culture
Promotion-Prevention Focus An entrepreneur's attention to minimizing losses, with a bias toward inaction or protective action to prevent loss This is ______ focus.
prevention
(4) Major Approaches to the Study of Entrepreneurship: Typically, has a personality with creative, managerial, and imaginative skill who can innovate and contribute positively to an industrial project This is the ________ Approach
psychological
(2) Solutions for Women & Minority-Owned Businesses: Government contracting funds that are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like
set-asides
(4) Steps of the General Business Process: 1. _______ 2. _______ 3. ______ 4. _______
ideation, innovation, entrepreneurship, commerce
(5) Planning Styles of Entrepreneurs: Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take These ppl are _______ planners.
reactive
(5) Stages of the Small Firm Life Cycle: The most typical fourth stage of the small business; Characterized by relatively stable or slowly rising sales and profits over several years
resource maturity
1st Challenge for Family Businesses: 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
role conflict
(2) Challenges for Family Businesses: 1. ______ ______ 2. _______
role conflict, succession
(4) Major Approaches to the Study of Entrepreneurship: Deals with social and cultural factors responsible for the nature and growth of entrepreneurship development in --> (creates fads) This is the ________ Approach
sociological
(5) Stages of the Small Firm Life Cycle: - This stage occurs after the success stage for a small percentage of businesses - It is characterized by rapid growth (5-10% a month or more)
takeoff
(6) Key Elements of Entrepreneurial Culture: Team members need to feel good about one another as people and professionals and want to help one another - it isn't enough to avoid toxic employees Passion for the ______.
team
- Average (entrepreneurs are BETTER than this) - A business action that has been widely adopted within an industry or occupation
standard business practice
