MGMT 1030 Lecture Notes - Lecture 6: Brewery Field, Upper Canada College, National Post

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20 Jul 2016
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The Entrepreneur in Canadian
Business History
MGMT 1030
Schulich School of Business
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The Staples Economy and Entrepreneurship in New
France
1)Economic Climate of New France
Quebec founded in 1608
New France ceded to Britain in 1763
French colonies dependent on the fur trade and farming
70% of all exports were furs in 1739
Little industry in evidence
Seigneurial system prevalent
Limited population base
55,000 residents by 1755
Rigid administrative structure
New France reorganized as a Crown Colony in 1663
Mercantile system designed to benefit France
Colonial officials appointed
2)Entrepreneurial Activity: François-Étienne Cugnet (1688-1751)
Member of an established French family
Arrived in New France in 1719
Director of the Domaine d’Occident controlling imports and exports
Prominent lawyer
Wide interest in small commercial ventures
Tobacco exports, buffalo domestication, glue manufacturing
Invested heavily in the Saint-Maurice ironworks from 1729-1741
Inflated expectations of potential profits
Relied on state funds and loans to cover increasing debt
Declared bankruptcy in 1741
Small colonial economy and government connections allowed Cugnet to engage
in entrepreneurial activity
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Entrepreneurship during the First Industrial
Revolution
1)Economic Climate of Upper Canada (Canada West), 1841-1867
Period of rapid growth
Population increase from 456,000 in 1841 to 1.4 million in 1861
Gradual attainment Responsible Government
Elected officials began to control economic policy
Government leaders intimately connected with and part of the business
community
Legislation favored railway development
Guarantee Act (1849)
Municipal Loan Fund (1852)
Relationship between the state and entrepreneurial promoters marked the First
Industrial Revolution, particularly in the railway sector
2)Entrepreneurial Activity: Samuel Zimmerman (1815-1857)
Born poor in Pennsylvania
Arrived in Upper Canada in 1842 and established himself as a contractor on the
Welland Canal
Developed extensive political connections and received contracts for constructing
the Great Western Railroad
Dominated railway promotion and construction relying extensively on public
money
Methods considered unethical by today’s business standards common in his
time period
Died, ironically, in a railway accident
Wide interests in other businesses
Principal landowner and developer of Niagara Falls
Bank owner
Reputed to be the richest man in Canada
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