| A | B |
|---|
| Entrepreneur Characteristic: Internal Locus of Control | Entrepreneur Characteristic: the belief that you are in control of your own destiny; they are self directed like and autonomy |
| Entrepreneur Characteristic: High Energy Level | Entrepreneur Characteristic: persistence, hard work ethic, and the willingness to exert great effort to succeed |
| Entrepreneur Characteristic: High Need for Acheivement | Entrepreneur Characteristic: motivation to accomplish challenging goals and thriving on performance feedback |
| Entrepreneur Characteristic: Tolerance for Ambiguity | Entrepreneur Characteristic: The ability to handle great risk |
| Entrepreneur Characteristic: Self-Confidence | Entrepreneur Characteristic: they are competent, believe in themselves, and are willing to make decisions |
| Entrepreneur Characteristic: Passion and Action Orientation | Entrepreneur Characteristic: they try to act ahead of problems so as not to waste valuable time |
| Entrepreneur Characteristic: Self Reliance and desire for independence | Entrepreneur Characteristic: they want independence and to be their own bosses |
| Entrepreneur Characteristic: Flexibility | Entrepreneur Characteristic: willingness to admit problems and errors and the ability to change course when plans fail |
| Drivers of Entrepreneurship | 1. Quest for new opportunities and 2. Absolute need |
| Small Business | Fewer than 500 employees, independently owned and operated, does not dominate its industry |
| Family Business | Good because of common values, teamwork, and a unified direction; Bad because there is a low survival rate and succession is a major problem (3% make it past the third generation) |
| Reasons For Failure | Lack of Experience, Lack of Expertise, Poor Financial Control, Growing too Fast, Insufficient Commitment, Ethical Failure, NOT LACK OF INITIAL CAPITAL |
| Stages of the Entrepreneurial Firm | 1) BIRTH STAGE: fighting for existence 2)BREAKTHROUGH STAGE: coping with growth and takeoff 3) MATURITY STAGE: investing wisely and staying flexible |
| Business Plan | Should Include: business goals; strategies to achieve goals, plan to implement strategies, exit strategy (BPs become very important for raising capital) |
| Sole Proprietorship | A single person or married couple pursuing business for profit (most popular in US; unlimited liability) |
| Partnership | 2 or more agree to start a business (general and limited) |
| Corporation | a legal entity chartered by the state existing seperately from its owners (2 BIG benefits: 1) organization has legal rights 2) the entity, not its owners assumes liability) |
| LLC | as far as liabilities are concerned, it functions like a corporation. As far as ownership and operations are concerned, it functions like a sole proprietorship or partnership |
| Franchising | entrepreneur pays fee (flat or commission) to the parent company for the right to sell its good or service |
