Entrepreneurial Small Business: entrepreneur Flashcards
What are two generally accepted
characteristics of entrepreneurs?
Desire for immediate feedback and willingness to take the initiative
What the three sources of
sustained competitive advantage?
Experience, uniqueness, and industry standard.
What are two ‘fatal flaws’ with
regards to strategy and small
Pursuing an unattainable competitive position and
failure to communicate strategy to employees
What is growth
the second stage in the product/market lifecycle
What is the economic core?
Organizations low on innovation and growth
What are three sources ofinnovation?
Social goals, life goals, and problems.
What is innovation?
A major difference between small business owners and entrepreneurs.
What is a business plan?
A game plan for managing a business successfully and
an important tool for attracting capital.
What are three sources of innovation?
Social goals, life goals, and problems.
What are two of the generic strategies?
Focus and low cost
What is creative destruction?
This occurs when a new technology makes an old technology obsolete.
What is external legitimacy
Term for determining if the general public accepts a business as viable based on various characteristics.
What are two of the Five Forces?
Threat of new entrants and threat of substites
What is family business?
A form of small business associated with role conflict and succession challenges.
What is a SWOT analysis
opportunities, and threats
What is a core competency?
An activity that an organization is exceptionally good at
What are the elements of a feasibility analysis
Industry, product, and financial
What are the two basic views on why we have entrepreneurs
Macro and micro
What are natural advantages
areas that small businesses excel in due to their small size.
What is value
relative price and relative quality impact this.
What are the three tests a business plan must pass
reality, competitive, and value
What are the three tests a business plan must pass?
Reality, competitive, and value
what is imitative
approach to business model strategy in which the business does what others already do.
What is indirect?
The type of competitor that serves very few ( if any) of the same markets.
What are features and benefits
Characteristics of a product and the advantage consumers receive.
What are thw myths of entrepreneruship
Entrepreneurs are born, not made and all they need is more capital
involves 1-50 people and has its owner managing the business on a day-to-day basis.
SDA defines a small business as on with fewer that 500 employess
Small businesses owner manage their businesses by expecting what?
Stable sales, profits, growth
Entrepreneurs focus their efforts on :
Innovation, Profitability, sustainable growth.
What is a novelty
Being different or new
What is a heir?
A person who becomes an owner through inheriting or being given a stake in a family business
refers to how important a role new ideas, products, services, processes, or markets play in an organization.
A model of an economy categorizing businesses based on their innovativeness and growth rate.
the ability to develop new ideas and to discover new ways of looking at problems and opportunities
– the ability to apply creative solutions to problems and opportunities to enhance or to enrich people’s lives
What is the BRIE model?
You need elements to come together in order to start a business.
Boundary: Creating a place for your business in locations and in peoples mines.
Resources: The money, product, knowledge, etc, that makes up a business
Intention: The desire to start a business.
Exchange: Moving resources/products/services in exchange for money.
Myths about small businesses
Not enough financing.
You can't start a business during a recession.
To make profits, you need to make something.
If you fail you can never try again.
Students don't have the skills to start a business
Macro view ( external )
Environment, financial, displacement ( political, cultural, economic)
Micro views ( internal )
Trait, venture opportunity, strategic formulation ( markets, people, products, resources)
Small business and the economy
Small business is the engine of job creation, generating 75% of the 3.4 million new jobs.
Small businesses employ more than half of all Americans.