GMS 200 Chapter Notes - Chapter 5: Small Business, Skunk Works, Franchising

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Franklin Ramsoomair

Document Summary

Entrepreneurship creating new business by strategic thinking and taking risk. Necessity-based entrepreneurship: takes place because other employment options don"t exist. Agency theory states that individuals try to make as much money as possible. Using this theory, entrepreneurs try to cut costs wherever possible. Entrepreneurs have to remember that 50% of small businesses fail in the first 4 years of operation. Tritech, dell and microsoft are small companies. National bank of canada, general motors, and 3m are large corporations. Gmp (gross national product) is small business: small business owners can react quickly to changes, nearly 85% of small businesses are conducting business over the internet. Small businesses fail because: lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, insufficient commitment, ethical failure. Family business owned and controlled by members of a family. Family business feud occurs when family members have major disagreements over how the business should be done.