Chapter One Flashcards
Small businesses employ over ____ of employees in the private sector
50%
Entrepreneurs
A person who relentlessly pursues an opportunity, in either a new or an existing business, to create value while assuming both the risk and the reward for his or her efforts
Criteria for defining small businesses
- small size relative to larger competitors
- fewer than 100 employees
- localized business operations
- financing supplied by one person or small group
- has the potential to become more than a “one person show”
Entrepreneurial opportunities
Economically attractive and timely opportunity that creates values for interested buyers or end users.
Reluctant entrepreneurs
Person who becomes an entrepreneur as a result of some severe hardship.
Refugee
A person who becomes an entrepreneur to flee and uncomfortable situation.
Founder
“Pure entrepreneur”. Person who brings a new firm to existence
Administrative entrepreneur
An entrepreneur who oversees the operations of an on going business
Franchisee
An entrepreneur whose power is limited by the contractual relationship with a franchising organization
Entrepreneurial team
Two or more people working together as entrepreneurs
High-potential venture (gazelle)
A small firm that has great prospects for growth
Attractive small firm
A small firm that Provides substantial profits to its owner
Micro business
A small firm that Provides minimal profits to its owner
Lifestyle business
A micro business that Permits the owner a comfortable or desired pattern of living.
Artisan entrepreneur
Person with primarily technical skills and little business knowledge who starts a business
Opportunistic entrepreneur
Person with both sophisticated managerial skills and technical knowledge who starts a business
40% of all new businesses are now majority __________
Female owned
Problems facing female entrepreneurs
- discrimination
- lack of access to credit
- lack of networking
- try to balance work and family life
Millennial entrepreneurs
- have no fear of technology
- idealistic and optimistic
- more collaborative
- build elements of community in the business
- start companies while studying entrepreneurship
- fail fast, learn a lot and keep going
Characteristics of strong entrepreneurs
- strong commitment to the business
- strong internal locus of control
- moderate risk takers
Small businesses comprise ______ of all firms with employees
99.7%
Mentor
A knowledgeable person who can offer guidance from their experience in a given field
Founders as managers
Not always good organizational members
Resource constraints
Small bank accounts and a limited staff
Professional level management
Develop as much professionalism as possible while still retaining the entrepreneurial spirit of the enterprise
Micro loans
Very small loans, often provided to entrepreneurs in developing countries
Bootstrapping
Doing more with less in terms of resources invested in a business, and, where possible, controlling the resources without owning them
Paradigm shift
A change in how we fundamentally see a situation
Technician personality
A personality that focuses on an already developed technical skill, wants to be left alone to get the job done and is primarily concerned about the present
Manager personality
A personality that is pragmatic and likes order and planning operations
Entrepreneur personality
A personality that focuses on the business as a whole and providing results for the customer
Entrepreneurial legacy
Material assets and intangible qualities passed on to both heirs and society
