Entrepreneurial small business 4th edition katz

Think about building a list of activities that help develop, build or test skills. Ask people where they got lessons on how to master the competencies they needed. Also ask for people who did not have a particular competency, how they did or might compensate.

The key use of the competency list is to get students to think about what kinds of skills they need to be successful. A lot of being a good entrepreneur is taking responsibility to make sure the necessary work of the business gets done. Competencies tell you what that work needs to entail. Whether you do it yourself, outsource it, or have employees do it, as long as it is done, and done well enough, everything is fine 3.

Pick small businesses with which others in the class are familiar and analyze what level of professionalization they display. Be ready to explain the basis for your classification. This exercise works best with a couple of different types of businesses. Virtually all medical offices are highly professionalized. Specialized businesses are often seen where the owner displays a true passion for one aspect of the business. Gourmet or specialty restaurants bar-b-q restaurants are notorious for this and bars specializing in music or the latest scene are popular examples of specialized firms.

When one aspect of the business seems far ahead of everything else, that is a likely candidate for a specialized business. In these cases, it is worth getting the students to explore what needs to happen to get the rest of the.

Minimalized businesses are often all around, but often hard to see because we take them for granted. The individual selling newspaper morning on a street corner, the person who comes around sharpening knives or selling firewood from the back of a truck, the woman who takes in sewing or laundry — these are often businesses run in a minimalized way.

A one-time eBay seller is another popular example. In these kinds of situations, it is worth evaluating if the minimalized approach makes sense. Sometimes it does because the stakes are low or the time is short. For folks who plan to repeat their work, minimalized approaches have inefficiencies that rapidly make the business untenable or marginal. See if the students can imagine a few simple fixes to help make a minimalized business more successful or stable.

Interview this person if possible. What particular challenges were faced? What competencies were used to overcome them?

This exercise can become a source of inspiration for the students and the class. It also can help the students to begin networking with accomplished entrepreneurs in the locality. Instructors get divided over whether it is ok to let students interview their parents if they qualify for this.

It depends on your faith in the student actually doing the interview, and your faith that their relationship is a good one.

When everything works out right, students discover a whole different side of their parents, since these issues are not typical discussions around the dinner table.

It is often amazing to the students how accessible many of these people are. It might be possible to get the student a personal introduction to the famous entrepreneur. In Chapter 1 students were asking about reasons for entry. In this case, students are asking about the problems the entrepreneur or at the time, prospective entrepreneur faced, and how these challenges were met.

Most entrepreneurs have talked about this before, so the student should be prepared to ask questions to determine which competencies were in play. It is fine to share the list of competencies with the entrepreneur and see their reaction and thoughts about the different skills and the role these played if any — after the story is told and the interview is done. As in Chapter 1, before you send the students out, decide and tell them what information you want from them when they report back to the class — which competencies, the exact form of the competency used that the entrepreneur mentions, etc.

Hobart, Harry, Henry, Herman and Howard all have been in business for a number of years. One Saturday, while their children play soccer, they discuss what traits they have that they think makes them a great entrepreneur.. I LOVE doing it. I wake up thinking about it and sleep at night dreaming about it.

Tam wanted to open a Vietnamese take-out restaurant. While there are a lot. He has considered his target market heavily Vietnamese American area and saw the opportunity for a carry out restaurant.

Tam, again rates relatively well in these areas. Resource Competencies: There is no information in this story to indicate that Tam has any resource competencies. Tam may need to do more work in this area. The idea is probably profitable, although there is no information in the case to prove this.

The idea is, unfortunately, easy to copy. Learning Objective 3 3. Wilma started this business 30 years ago when her children three boys and a girl were just babies and has grown it into a size suitable for supporting her, her children and the spouses two of them have. One son and her daughter are not yet married. Two of her sons have degrees in accounting and law and specialize in those areas of the firm.

These sons are married and their wives supervise shipping and production. Her oldest son, John, did not go to college, but has pretty much worked his way through the business and has competent skills in all areas. Her daughter, the baby of the family, just completed her business degree and has entered the business.

In addition to her business training, she has a flair for design and insight into what businesswomen like. Wilma started having some problems last year when her daughter, Kay, entered the company.

Wilma decided to set Kay up as an equal second-in-charge with. Kay has some good ideas learned in school and wants to make some changes. What would you suggest they do to alleviate these? The role conflict is visible between Kay and John. While Kay may very well be a competent businessperson, John is treating her like a baby sister and not a colleague.

Wilma may also be exhibiting role conflict. Being a good mother means showing no favorites - like creating two second-in-charge positions. Being a good manager means knowing that this overlapping of responsibilities rarely works. Wilma does not appear to have a succession plan in place although she is considering taking a more minor role or even retiring.

As her health is not what it used to be, this could become critical should she become suddenly worse. It is likely that John and Kay will both want the top spot and their current conflict indicates that should this happen without a agreed upon succession plan, things could get very ugly. Wilma should consider setting up a family council to discuss succession along with role conflict and division of duties.

Her four children and her two daughtersin-law should be on the council. Should the other concur, some more equitable division of responsibilities should be set up between John and Kay.

An advisory board of people outside the company may also be helpful, especially if the family cannot resolve these issues amicably. Darrel had a terrific idea, but little money. David had the money, but no ideas. They decided to partner up and start a small business. Darrel was really excited about his idea and spent long hours trying to get the business up and running.

David balked at the cost and wanted to do a mailer. These two exhibit which of the common pitfalls unconnected entrepreneurial teams? Answer: David contributed the money, but Darrel the idea and the time. Learning Objective 5 5. Once someone called and I answered the phone. He said that he thought Terry was a man and hung up. What am I to do? How might she handle it? Answer: Terry is facing discrimination, mostly through lack of access.

The first thing she can do about it is to become certified and go after government and big business set asides, funds earmarked for minority and woman-owned businesses. The second this to do is to network. By getting out into the community through various organizations, she will begin to here about these projects earlier and will have a chance to bid on them.

She will also begin to establish her credibility and legitimacy in the business community and fewer potential customers will be concerned about her being black or a woman. A course he had played on a number of times came up for sale and Will invested his buyout money into the down payment. What can you tell him? For the first problem, he needs to list all the tasks that need to be done and decide which ones he likes to do, feels competent doing, and feels that he should do in order to stay on top of things.

Others he should delegate, get assistance with, or even eliminate if unnecessary. He can find help, suggestions, and assistance through networking. Again, networking will help him by being around other entrepreneurs — especially other late career entrepreneurs — who have gone through similar things.

For the third problem, the money is already gone, but he should look into small business loans or other ways of extracting some of this. As the golf course turns a profit, he should consider reinvesting some of those profits to replenish his nest egg. Mini-Case: George Washington, Distiller and Seventh-Career Entrepreneur Our first president had many careers — farmer, surveyor, soldier, commander, legislator, President and distiller. During his presidency, his Mount Vernon plantation suffered and was on the brink of bankruptcy.

Partnering with James Anderson, Washington saw an opportunity to compete with expensive imports and open a distillery in making proof rye whiskey. Mini-Case Questions 1. They are demonstrated by focusing on your business over other choices and being ready to find out about and do what it takes to pursue opportunities that will help get the business going.

Level of Difficulty: 3 Hard. Activities, knowledge, and skills specific to businesses in a particular industry are known as industry-specific knowledge. Some of these skills focus on knowing your new business and its context. For even the smallest part-time business, the entrepreneur needs to find or gain access to resources such as time, information, financing, space for the business, raw materials, and a variety of people.

Opportunity competencies include identifying an opportunity, a product, or service idea that is likely to lead you to a profit and is ideally distinctive to your firm and, you hope, hard for others to copy. Small, family-owned businesses have many advantages. If the business is managed at the top by a group of tight-knit family members, communication-based integration can be more effective, and decision making can be easier and quicker.

Role conflict is at its worst when people fail to recognize it. For family business, the most effective approach for avoiding role conflict is to keep family issues out of the family business. Whenever possible, try and make decisions based on business necessities.

Entrepreneurs are among the most rushed people in the workforce. Part of this comes from the responsibilities of ownership. The organizing process to help make the most efficient use of the day is known as time management.

Often the lack of a clear succession plan is the death knell for those family firms facing their first intergenerational transition. It is not a good forum for grappling with issues like role expectations, commitment, and personal responsibility. The focus of council meetings is the business-family relationship. For family councils and boards of advisers, it is often helpful to get professional advice at the start, and then continue on your own.

One organization that tracks experts in family business is the Family Firm Institute. While the classic image of the entrepreneurial small business would involve the image of the solo entrepreneur, the modern reality is different.

The majority of new businesses have a team of two or more co-owners, and the trend is toward even more businesses being developed by teams of entrepreneurs. Most teams are family related. In fact 53 percent of teams are spouses or life partners working together. Women prefer more high-tech firms, as well as firms where technology is central to the business than men. For example men more often mention making money as a motivation, while women more often mention having flexibility for personal and family life.

The overall growth strategies also differ, with more women choosing single-person lifestyle firms over the small business forms that employ others. Along these strategy lines, women prefer less-risky firms, which also tend to be the firms with lower returns. Blooms: Understand Learning Objective: Identify the challenges women and minority business owners face. Qualification for set-asides requires certification as a business owned and operated by a woman or a minority or both.

Several reasons account for the phenomenal growth in the number of minority entrepreneurs. The establishment of both public and private funding and networking initiatives has helped to level the business playing field for minority entrepreneurs by offering information, advice, and funding access. Another explanation lies in the growth of racial and ethnic groups within the U. The two fastest growing minority groups Hispanics and African Americans represent the largest segments of minority business owners.

Hispanics represent 46 percent of all ethnic business owners, Asians 25 percent, and African Americans 24 percent. Despite the growth in the number of women and minority entrepreneurs, both groups still face the challenge of access.

This can result from the way that networks built from interpersonal relations in business exclude women and minorities. There are two solutions for access-based challenges. One solution is institutional, when minority and women-owned small businesses pursue dedicated contracting funds, known. The good news is that governments at all levels have special contracting opportunities for small businesses that are owned and operated by minorities or women.

An examination based acknowledgement that the firm is owned and operated as specified is known as certification. For those businesses that qualify, certification provides a ready means of access to opportunity and to networks of businesses and government agencies which can be leveraged to gain access to other sectors of business. Which of the following statements about certification with regard to women- or minority p.

Certification is not for every women- or minority-owned small business. Late career entrepreneurs also known as second career entrepreneurs are people who begin their businesses after having retired or resigned from work in corporations at age 50 or later.

Whether these individuals start their business as part of a postretirement career plan or after early retirement has forced them to reevaluate their lives, a late career as a business owner has become a necessity for them. Mark, a year-old, starting a new business venture in stock trading after the failure of his previous business in real estate. Timothy, a year-old, joining a real estate agency as a sales representative, after being retied for 4 years.

A problem for second career entrepreneurs is keeping personal finances out of the business. They fail to carefully consider how they will invest the money in the business, and how it will be used. Taking the easy way out can often mean late career entrepreneurs underprepare for the rigors of business, and they are risking their retirement nest egg.

The five behaviors include the following:. Passion: Passion is 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. Perseverance: Perseverance is 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.

Planning Style: There is more than one way to plan. In fact, there are five ways. These include different types of planners like comprehensive planners, critical-point planners, opportunistic planners, reactive planners, and habit-based planners. Professionalization: The extent to which a firm meets or exceeds the standard business practices for its industry is known as professionalization.

Getting organized and registered—which creates the boundary—is an example of an operations activity. There is also industryspecific knowledge. There are a collection of techniques for time management, which can help meet the challenges of schedule overload.

Then as you finish them, you can enjoy crossing them off the list. The most important tasks due soonest get a priority of 1. If there are tasks of any level that can be lumped together, so much the better.

How do you decide importance? If the task will not help your business or family, it is probably not a priority 1 task. Delegate—Look at your task list and see which tasks you can get others to do for you for free or at a price. Repeat—Take a few minutes every day to repeat the above steps.

It will save you time later. Ten minutes a week spent this way can make a world of difference. When the current owners are ready to think about who follows them, it involves thinking about succession—the process of intergenerational transfer of a business. 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.

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.

Only a very small number of all entrepreneurs were able to rely on family members to take over. Sometimes none of the children have an interest in the family business. The opposite problem arises in situations when several family members believe they should take over the top spot and vie for the position to the detriment of both family and business. The estimated amount of time this product will be on the market is based on a number of factors, including faculty input to instructional design and the prior revision cycle and updates to academic research-which typically results in a revision cycle ranging from every two to four years for this product.

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Skip to main content x Sign In. The text is written for the vast majority of small-business entrepreneurs who need a business plan in order to get funding from friends, family, and bankers, not venture capitalists roaming the coffee shops. And for business owners who need to operate and fund themselves for the years it will take until the business matures into its best self.

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