Entrepreneurial Management (SG2)

Question 1

An intense positive feeling the entrepreneur has toward the business or even the idea behind the business. It comes from being actively involved in moving the business forward.

Answer 1

Passion

Question 2

Best thought of as a type of learned optimism, the ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known.

Answer 2

Perseverance

Question 3

Intent on maximizing gains, which gives us a bias toward pursuing opportunities likely to lead to those gains

Answer 3

Promotion focus

Question 4

Intent on minimizing losses, with a bias toward inaction or protective action. Being a successful entrepreneur involves balancing the two focuses.

Answer 4

Prevention focus

Question 5

Take a long-term view, develop long-range plans for all aspects of the business, are comfortable with planning, and act based on the plans they’ve developed.

Answer 5

Comprehensive planners

Question 6

Plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed. It is not a very long-term approach to planning.

Answer 6

Critical-point planners

Question 7

Generally start with a goal and look for opportunities to achieve it. Once they find a good opportunity, even if it isn’t the one related to their original goal, they act on it, so it is very short term in orientation.

Answer 7

Opportunistic planners

Question 8

completely passive, waiting for cues from the environment to determine what actions to take. Their focus is entirely short term, and there is little in the way of goals driving their efforts. They can make the most of a situation because there is no other plan competing for their attention

Answer 8

Reactive planners

Question 9

Do not really plan at all because their actions are dictated by their routines. They do today what they did yesterday. They don’t plan, and they don’t even tend to react to changes in their environments

Answer 9

Habit-based planners

Question 10

One hallmark of successful entrepreneurs is that they usually do at least one thing much better than average.

Answer 10

Professionalization

Question 11

That average is called a __ and every industry has them. Doing that level or better is what professionalization is all about.

Answer 11

Standard business practice

Question 12

Three levels of professionalization?

Answer 12

Expert business professionalization
Specialized business professionalization
Minimalized business professionalization

Question 13

When most aspects of the business meet or exceed the industry’s standards

Answer 13

Expert business professionalization

Question 14

When one or two aspects of the business are at this level

Answer 14

Specialized business professionalization

Question 15

When none of the aspects of the business achieve the industry standard.

Answer 15

Minimalized business professionalization

Question 16

Other specific types of business-related expertise—called?

Answer 16

Competencies

Question 17

Activities common to all businesses such as sales, operations (also called production), accounting, finance, and human resources.

Answer 17

Key Business Functions

Question 18

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

Answer 18

Industry-Specific Knowledge

Question 19

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.

Answer 19

Resource Competencies.

Question 20

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

Answer 20

Determination Competencies

Question 21

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

Answer 21

Opportunity Competencies

Question 22

There is a lot of predictability in this growth process and knowing the developmental stages of the _____ can help you better understand your business and your career as a small business owner.

Answer 22

Business life cycle

Question 23

The first stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business.

Answer 23

Emergence

Question 24

The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances. The problems of mastering these three areas form what are called the liabilities of newness for small businesses in their existence stage.

Answer 24

Existence

Question 25

The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.

Answer 25

Success

Question 26

Profits that are available to be used to satisfy the preferences of the owner in how the business is run.

Answer 26

Slack resources

Question 27

The resource maturity stage is the most typical fourth stage of the small business. It is characterized by relatively stable or slowly rising sales and profits over several years. In a firm that has a takeoff stage following the success stage, the resource maturity stage occurs after takeoff.

Answer 27

Resource Maturity

Question 28

This stage occurs after the success stage for a small percentage of businesses. It is characterized by rapid growth (5–10 percent a month or more). When this growth levels off, the firm enters the resource maturity stage.

Answer 28

Takeoff

Question 29

There is a special case of organizational culture for start-ups, called?

Answer 29

Entrepreneurial culture.

Question 30

There are a variety of approaches to thinking about the specifics, but in the end, there are five key elements:

Answer 30

Passion for the Mission
Passion for the Team
Passion for the Customer
Passion for Innovation
Passion for Fairness

Question 31

Firm in which one family owns a majority stake and is involved in the daily management of the business.

Answer 31

Family businesses

Question 32

Some of the top companies in the Philippines are run by families.

Answer 32

SM Investments Corp.
Ayala Corp.
LT Group
Aboitiz Equity Ventures

Question 33

Two challenges typical to family businesses.

Answer 33

Role conflict and succession

Question 34

Describes the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and each makes different demands on them. _____ breeds another unending problem—the shortage of time. Entrepreneurs are among the most rushed people in the workforce.

Answer 34

Role conflict

Question 35

There are, however, a collection of techniques for time management, which can help meet the challenges of schedule overload. Consider these basic methods:

Answer 35

List
123 Prioritize
Delegate
Repeat
Strategize

Question 36

The process of intergenerational transfer of a business. Often the lack of a clear succession plan is the death knell for those family firms facing their first intergenerational transition. If the founder dies, becomes seriously ill, or is incapacitated before he or she can groom a successor, the new family leader may be suddenly thrust into the role before coming up to speed on vital company information and developing needed skills. Also, in the absence of a succession plan, private and public dissension among various factions of the family becomes more likely, negatively affecting operations within the firm, and may eventually cause the business to fail.

Answer 36

Succession

Question 37

People who begin their businesses after having left, retired, or resigned from work. This can be work in the armed forces, in other profit or not-for-profit organizations, or even when parents are no longer tied to caring for others at home.

Answer 37

Second career entrepreneurs