unit 3

Necessity based entrepreneurs

Occurs because other employment options do not exist.

Why has entrepreneurship increased in popularity?

- Downsizing of large corporations
- Necessity based entrepreneurs - takes place because other employment options do not exist.
- Crossovers to small business by former large business employees
- Increased options in franchising
- The emergence of web-based businesses - global business without ever leaving the comfort of our own home.
- Increased entrepreneurial opportunities for minorities and women
- Mompreneurs
- Better survival rates for small businesses (pre-covid)
- Technological advances

The entrepreneurial Personality (8 Personality traits and 2 factors)

- Self-confidence
- high energy level
- internal focus of control
- tolerance for ambiguity
- self-reliance and desire for independence
- high need for achievement
- flexibility
- passion and action orientation:

Internal focus of control

belief you have control over what happens

tolerance for ambiguity

you can handle uncertainty

self-reliance and desire for independence

being able to rely on and trust yourself

high need for achievement

setting high goals for one-self and doing everything you can to reach those goals

passion and action orientation

having the passion for what you are doing and being able to act on it.

Entrepreneurial Personality

personality traits that distinguish entrepreneurs from non-entrepreneurs.

The role of entrepreneurship in our society

Employ some 52 percent of private workers
Provide 51 percent of private-sector output
Receive 35 percent of federal government contract dollars
Provide as many as 7 out of every 10 new jobs in the economy

Corporate entrepreneurship

Process of creating new products, ventures, or processes within large organizations.

Entrepreneurship inside

could be a non-profit or a small business

Franchising

A type of license purchased by a franchisee from an existing business to be the franchisor to allow them to trade under the name of that business.

Mastered (4)

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Entrepreneurship

It is the way of thinking, acting, and being that combines the ability to find or create new opportunities with the courage to act on them.

Entrepreneur

Someone who engages in entrepreneurship.

Small Business

A business that is privately owned by one individual or a small group of individuals; it has sales and assets that are not large enough to influence its environment.

High energy level

get people excited about products and be willing to work long hours

Not studied (75)

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Social entrepreneurship

A unique form of ethical entrepreneurship that seeks novel ways to solve social pressing problems.

Family Entrepreneurship

Business that is owned and managed by multiple family members, typically for more than one generation.

Serial Entrepreneurship

Entrepreneurs jump from businesses and non-profit over and over again. Moving from one interest and opportunity to the next.

Small businesses by industry

Services are the fastest growing segment of small-business enterprises. This is because you don't need any schooling to do it.

writing a business plan

document designed to map out the course of a company over a specific period of time.

Step 1: Writing a business plan

Description of a Business
- what does our business do, why, how?

Step 2: Writing a business plan

Marketing Plan
- how to get the word out and tell people about our business.

Step 3: Writing a business plan

Production/Operations Plan
- what does it take to make our business run

Step 4: Writing a business plan

Management Plan

Step 5: Writing a business plan

Financial Plan
- figuring out how much it is going to cost to start and run the business plan

structure of entrepreneurial organizations

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financing a new business

- Personal Resources
- Strategic Alliances
- lenders
-Venture Capital

personal resources

Using your own money and money borrowed from friends and relatives to finance the business

Strategic Alliances

Partnering with established firms such as suppliers in a mutually beneficial relationship

Lenders

Obtaining funding from traditional lenders. These include banks, independent investors, and government loans

Venture Capital

Groups of small investors who provide capital funds to small high-growth potential start-up firms in exchange for an equity position in the firms

Art Lifting Video Case

HRM

Human resource management
- the set of organizational activities directed at attracting, Developing, and maintaining an effective workforce

Strategic Importance of HRM

-HRM is increasingly important as firms realize the value of their human capital in improving productivity
-HRM is critical to bottom-line performance of the firm
-HR planning is now part of the strategic planning process

The legal Environment of HRM

equal employment opportunity, compensation and benefits,
labor relations,
health and safety

Equal Employment Opportunity Laws

1) title VIl of the civil rights act of 1964
2) affirmative action
3) pregnancy discrimination act
4) Americans with disabilities act
5)sexual harassment

Compensation and Benefits Laws

1) Fair labor standards act (FLSA)
2) Equal Pay act of 1963
3) family and medical leave act (FMLA)

Labor Relations Laws

1) National labor relations act of 1935
2)labor management relations act of 1947

Health and Safety Laws

1. Occupational Safety & Health Act (OSHA) 1970

HRM process

- 7 questions
1) what laws and regulations shape my HRM practices?
2) what are my HRM needs?
3)where can 1 find qualified job candidates?
4) how can 1 choose the best qualified job candidates?
5) how can 1 ensure employee skills are current?
6) what is the best way to evaluate an employee's performance?
7) what options exist to handle staffing?

Recruitment

The process of attracting qualified job candidates to fill vacant positions

Internal Recruitment

Advantages: willingness to learn, already knows what is going on
Drawbacks: doesn't have secondary skills for the new job, filing for two positions instead of one, could be a better fit, and willnot be able to provide a diversity of thought

External Recruitment

Advantages: different perspectives, and more options
Drawbacks: don't know if the person is a good fit, cond end up being a bad employee can make employees feel like they aren't a good fit, more expensive

Social Recruitment

Employees reach out to their network

Selection

involves gathering and assessing information about job candidates and making decisions about whom to hire.

Screening Applicant Info

-looking at applicant info
-qualification, poor references , inappropriate use of social media

Interview or site Visit

Not prepared, bad impression, poor interpersonal skills, lacking job skills

Employment Testing

Poor test scores, negative personality indicators

Preemployment Checks

Physically unfit for job, failed drug test, failed background check

Selection Techniques

Reliability, Validity, Unstructured, Behavioral, Situational

Reliability

means that a selection device repeatedly gives consistent results.

Validity

means that scores on a selection device have demonstrated correlation with future job performances

Types of Interviews

structured, unstructured, behavioral, situational

Unstructured Interviews

free flowing conversation, different candidate to candidate.

Behavioral Interviews

- "tell me about a time when"
- STAR method

STAR method

Situation, Task, Action, Result

Situational Interviews

- " if you were in "blank" situation, what would you do?"

Developing Workforce

Performance Appraisals

Behavior Based Appraisals

Results Based Appraisals

360 Degree Feedback

Types of Performance Appraisal Errors

Compensation

- Part of the HRM Process

Google HR: Video Case

The Psychological Contract

Person-Job Fit

the extent to which om individuals knowledge, skills, experience and personal characteristics are consistent with the requirements of their work.

Personality and Individual Behavior

Personality

an individual's characteristic pattern of thinking, feeling, and acting

The Big five Model of Personality

Other Personality Traits at Work

Locus of Control

Self-Efficiancy

the belief in one's ability to take action and perform a specific task

Authoritarianism

Machiavellianism

Self-Esteem

how much you value, respect, and feel confident about yourself

Debt financing

involves borrowing money that must be repaid over time, with interest

Equity financing

involves exchanging ownership shares for outside investment monies. Only give away 49% of your company.

Initial public offering

an initial selling of shares of stock to the public at large

Angel investor

a wealthy individual willing to invest in return for equity in a new venture

Crowdfunding

entrepreneurs starting new ventures go online to get startup financing from crowds of investors

Sole Properietorship

When an individual pursues business for a profit

Partnership

A business in which two or more persons combine their assets and skills

C corp

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders

S Corp

Consists of up to 100 shareholders and is not taxed as separate

B Corp

A corporation that is not just focused on profit. They euro about people and the environment

LLC

Highbred form of business combining the advantages of sole proprietorship, partnership, and a corporation

Attitudes and Individual Behavior

Definitions of above

Work-related Attitudes