Chapter 7 – Entrepreneurship and Starting a Small Business.docx

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Chapter 7 Entrepreneurship and Starting a Small Business
Entrepreneurship: accepting the challenge o starting and running a business.
Originates from the French word, entreprendre meaning “to undertake”
Entrepreneurship differs from small businesses:
1. Amount of wealth creation A successful entrepreneurial venture creates
substantial wealth, compared to just generating an income.
2. Speed of wealth creation entrepreneurial wealth creation often is rapid.
3. Risk entrepreneurial risk is high.
4. Innovation entrepreneurship involves substantial innovation.
Why people take the entrepreneurial challenge
Some reasons may include unexpected structural unemployment, a sudden inheritance that
allows them to try something different, a change in health that forces a career path
adjustment, a change in family responsibility or even disliking a supervisor. Other reasons:
New idea, process or product some are driven by a firm belief that they can produce
a better product or produce at a lower rate than someone.
Independence
Challenge
Family pattern
Profit
Immigrants some immigrants lack education, and other factors make it hard for
them to find employment. Though they often have the drive and desire to succeed.
What does it take to be an entrepreneur?
Important entrepreneurial attributes:
Self-directed
Determined
Action-oriented
Highly energetic
Tolerant of uncertainty entrepreneurship is not for anyone squeamish or bent on
security.
Able to learn quickly
Courage is required.
Entrepreneurs don’t get their ideas from a flash of inspiration, the source of innovation is
more like a flashlight.
Necessity isn’t always the mother of invention. Entrepreneurs don’t always look for what
customers need, they look for what they don’t need as well.
Women entrepreneurs
Small and medium-sized enterprises (SMEs): refers to all businesses with fewer than
500 employees.
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Women owners of SMEs tend to operate in the wholesale, retail and professional services
industry.
Reasons for the significant emergence of female entrepreneurs:
Financial need
Lack of promotion opportunities
Women returning to the workforce
Family and personal responsibilities
Public awareness of women in business
Part-time occupations
Higher rate of success for women
Entrepreneurial teams
Entrepreneurial team: a group of experienced people from different areas of business
who join together to form a managerial team with the skills needed to develop, make and
market a new product.
Micropreneurs and home based businesses
Micro-enterprise: a small business defined as having fewer than five employees.
Micropreneurs: small business owners with fewer than five employees who are willing to
accept the risk of starting and managing the type of business that remains small, lets them
do the kind of work they want to do, and offers them a balanced lifestyle.
Many micropreneurs are owners of home-based businesses.
Reasons for the growth of home-based businesses:
Computer technology
Corporate downsizing
Change in social attitudes
Challenges of setting up a home-based business:
Getting new customers
Managing time
Keeping work and family tasks separate
Abiding by city ordinances
Managing risk
Entrepreneurship within firms
Intrapreneurs: creative people who work as entrepreneurs within corporations.
Encouraging entrepreneurship: what government can do
Canada Business’ mandate is to serve as the primary source of up-to-date and accurate
business-related information and to provide referrals on government programs, services,
and regulations without charge, in all regions of Canada.
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