Small Business Entrepreneurship Chapter 3

Study Notes

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

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 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 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

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

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