Small Business Entrepreneurship Chapter 3
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Questions and Answers

What percentage of businesses in the United States are classified as small family businesses?

  • 71%
  • 39% (correct)
  • 4%
  • 25%

    • What percentage of America's workforce is employed by family businesses?

  • 30%
  • 58% (correct)
  • 45%
  • 75%

    • Which of the following is a challenge faced by family businesses?

  • Government regulations
  • Role conflict (correct)
  • Market competition
  • Economic downturns

    • What strategy is NOT recommended for effective time management in family businesses?

    <p>Procrastinate on tasks (A)</p> Signup and view all the answers

    Who are considered late career entrepreneurs?

    <p>People who begin businesses after retiring or resigning at age 50 or older (A)</p> Signup and view all the answers

    What is a characteristic of the classic entrepreneurial personality?

    <p>Socially isolated (C)</p> Signup and view all the answers

    Which competency involves understanding the organizational and business processes of a firm?

    <p>Basic business competency (D)</p> Signup and view all the answers

    What type of entrepreneur is characterized by being an idea person?

    <p>Classic entrepreneur (C)</p> Signup and view all the answers

    Which of the following is NOT considered a key business function?

    <p>Marketing Strategy (B)</p> Signup and view all the answers

    What does professionalization in a firm refer to?

    <p>Meeting industry standards (C)</p> Signup and view all the answers

    What defines a family business?

    <p>Family owns the majority stake and is involved in management (D)</p> Signup and view all the answers

    What term describes the ability to find necessary resources for a business operation?

    <p>Resource competencies (B)</p> Signup and view all the answers

    Which of the following best describes 'minimalized' professionalization?

    <p>“Good enough” approach without systematic accounting (A)</p> Signup and view all the answers

    What is one of the challenges specific to minority business owners?

    <p>Limited networking opportunities (C)</p> Signup and view all the answers

    Which entrepreneurial competency is essential for identifying business opportunities?

    <p>Opportunity competencies (D)</p> Signup and view all the answers

    Flashcards

    What percentage of US businesses are family businesses?

    Family businesses encompass more than half of all businesses in the United States.

    What percentage of US businesses are small family businesses?

    Small family businesses make up a significant proportion of the US business landscape, employing a large portion of the workforce.

    What is role conflict in family businesses?

    Role conflict arises when individuals hold multiple responsibilities, like parent and boss, and these roles create conflicting demands.

    What is time management in family businesses?

    Time management is crucial for effectively prioritizing and utilizing time in a day. This involves creating lists, organizing tasks, delegating, and strategizing.

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    Who are second-career entrepreneurs?

    Late career entrepreneurs are individuals who start their businesses after retiring or leaving corporate positions at 50 or older.

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    Professionalization

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

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    Standard Business Practice

    A set of business actions that are widely accepted within an industry.

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    Family Business

    A business where a family owns a majority stake and actively manages its operations.

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    Key Business Functions

    Business expertise related to core functions such as sales, operations, accounting, finance, and human resources.

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    Industry-Specific Knowledge

    Knowledge and skills specific to a particular industry or business sector.

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    Resource Competencies

    The ability of an entrepreneur to secure resources for their business, including time, information, location, financing, raw materials, and expertise.

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    Determination Competencies

    Skills related to the energy, focus, and drive needed to build a successful business.

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    Opportunity Competencies

    Skills in identifying and taking advantage of opportunities in the business environment.

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    Basic Business Competency

    A form of business expertise representing knowledge and skills related to organizational and business processes.

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    Entrepreneurial Personality Types

    Distinct types of entrepreneurial personalities based on their core strengths and focus, including classic profile, idea person, small business owner, contemporary classic entrepreneur, salesperson entrepreneur, and managerial entrepreneur.

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    Study Notes

    Small Business Entrepreneurs: Characteristics and Competencies

    • Small business entrepreneurship chapter 3
    • Learning Objectives include: entrepreneurial personality types, operational competencies of successful entrepreneurs, career paths of entrepreneurs, challenges of family business owners, special nature of entrepreneurial teams, challenges faced by women and minority business owners, situations of later-life business owners
    • Classic entrepreneurial profile characterized by being a loner, hard worker, fast learner, and risk-taker seeking wealth
    • Other entrepreneurial profiles include: idea person, small business owner, contemporary classic entrepreneur, salesperson entrepreneur, and managerial entrepreneur
    • Today's typical entrepreneurial personalities include: Salesperson Entrepreneur, Managerial Entrepreneur
    • Learning objectives also cover Entrepreneurial Operational Competencies

    Entrepreneurial Operational Competencies

    • Competencies are forms of business expertise
    • Basic business competency involves understanding organizational and business processes
    • Key business functions include sales, operations, finance, accounting, and human resources
    • Industry-specific knowledge refers to specialized skills and knowledge specific to a particular industry
    • Resource competencies involve the entrepreneur's ability to find necessary resources (time, information, location, financing, raw materials, expertise) for business operations
    • Determination competencies relate to the energy and focus needed to bring a business into existence
    • Opportunity competencies involve skills to identify and exploit business environment elements for profitable and sustainable businesses

    Professionalization

    • Professionalization measures the extent a firm meets or exceeds industry standard business practices
    • Expert businesses excel in all aspects of business practices
    • Standardized business practices are widely adopted business actions within an industry or occupation
    • Specialized businesses are passionate about one or two key business functions
    • Minimalized businesses prioritize keeping operations running with a "good enough" approach, potentially lacking systematic accounting and recordkeeping

    Family Businesses

    • Family businesses are firms where one family holds a majority stake and participates in daily management
    • A significant portion (1/3rd) of Standard & Poor's 500 companies are family-owned and managed
    • The percentage of small family businesses in the U.S. is 39%
    • They employ a substantial portion (58%) of the American workforce

    Family Business Challenges

    • Role conflict occurs when individuals juggle multiple responsibilities (e.g., parent and business owner), leading to conflicting demands

    • Time management is crucial: organizing, prioritizing, delegating, repeating activities, and strategizing lead to efficient day use

    Second-Career Entrepreneurs

    • Late-career entrepreneurs begin businesses after retirement or leaving corporate jobs (age 50 or older)
    • Obtaining advice, taking control of life, building networks and keeping personal finances separate from business operations are crucial aspects of success

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    Lecture 8 Characteristics and Competencies of Entrepreneurs PDF

    Description

    Explore the characteristics and competencies of small business entrepreneurs in this insightful quiz. You'll learn about different entrepreneurial personality types, the operational skills needed for success, and the unique challenges faced by various entrepreneurs, including women and minority business owners. Test your knowledge and gain deeper insights into this dynamic field!

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