MGTA01H3 Lecture Notes - Labour Force Survey, Small Business, Competitive Advantage

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Published on 1 Aug 2011
School
UTSC
Department
Management (MGT)
Course
MGTA01H3
Professor
Chapter Three: Understanding Entrepreneurship, Small Business + New Venture
Small Business
-Defining a ‘small’ business can be tricky
-Various measures might be used
oNumber of people the business employs
oCompany’s sales revenue
oSize of investment
oType of ownership
-Industry Canada main federal government agency responsible for small business
-Government relies on two distinct sources of information:
oBusiness Register – tracks businesses
oLabour Force Survey – tracks individuals
-To be included in register
oHave at least one paid employee
oAnnual sales revenue of $30 000 or more
oOr be incorporated
-Considered small
oFor goods producing business – fewer than 100 employees
oService-producing business – fewer than 50 employees
-Labour Force Survey uses information from individuals
oMake estimates of employment and unemployment levels
oSelf-employed – working owners of a business, working for themselves
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-Majority of the businesses in Canada have no employees nor are they incorporated
-Small business: an owner-managed business with less than 100 employees
The New Venture/Firm
-Three most common criteria to determine when a new form comes into existence:
oWhen it was formed
oWhether it was incorporated
oIf it sold goods or services
-Business considered to be new – if has become operational within previous 12 months
-New Venture(Firm): a recently formed commercial organization that provides goods or
services
Entrepreneurship
-Entrepreneurship: the process of identifying an opportunity in the marketplace and
accessing the resources needed to capitalize on it
-Entrepreneurs: people who recognize and seize opportunities
-Small businesses are usually independent owned and influenced by unpredictable market
forces
oThey provide an environment where attributes like creativity can be used
-Entrepreneurs can occur in different types of firms
The Role of Small and New Businesses in the Canadian Economy
Small Businesses
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-Close to 98% of all businesses in Canada are small
-58% of all businesses are located in Ontario and Quebec
-Canadian allocation of small businesses are similar to US
-Majority of the small businesses have fewer than five employees
-Private Sector: the part of the economy that is made up of companies and organizations
that are not owned or controlled by the government
-According to Industry Canada small businesses account for over 2/3rd of employ in
four industries:
oNon-institutional health care
oConstruction industry
oOther services
oAccommodation and food
-Contribution of small businesses to economy in terms of GDP?
oAnnual contribution has been valued at 25%
New Ventures
-New firms are responsible for the vast majority of new products and services
-Most of the growth in firms occurred in services produces sector
-The number in high-knowledge industries doubled
-Women are playing a far more prominent role than before
oIn terms of who has been responsible for the growth
omore than 800,000 women entrepreneurs in Canada
-government statistics exclude new ventures if they are without employees
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Document Summary

Chapter three: understanding entrepreneurship, small business + new venture. Defining a small" business can be tricky. Various measures might be used : number of people the business employs, company"s sales revenue, size of investment, type of ownership. Industry canada  main federal government agency responsible for small business. Government relies on two distinct sources of information: business register tracks businesses, labour force survey tracks individuals. To be included in register : have at least one paid employee, annual sales revenue of 000 or more, or be incorporated. Considered small : for goods producing business fewer than 100 employees, service-producing business fewer than 50 employees. Labour force survey  uses information from individuals: make estimates of employment and unemployment levels, self-employed working owners of a business, working for themselves www. notesolution. com. Majority of the businesses in canada have no employees nor are they incorporated. Small business: an owner-managed business with less than 100 employees.