GMS 200 Chapter Notes - Chapter 5: Limited Liability Partnership, General Partnership, Initial Public Offering

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

This is called necessity based entrepreneurship; they start new ventures because they have few or no other employment and career options. For example, subway, you will run the franchise under the original owner"s business name and guidance. In return you will get a share of income or flat fee: family businesses on the other hand, and ones owned and financially controlled by family members. Why small businesses fail: small businesses have a high failure rate. There are several kinds of mistake typically made: lack of experience, lack of expertise, lack of strategy and strategic leadership, poor financial control, growing too fast, insufficient commitment, ethical failure. New venture creation: a first-mover advantage comes from being first to exploit a niche or to enter a market, there are 3 stages in the life cycle of an entrepreneurial firm, birth stage. Fighting for existence and survival: breakthrough stage. Coping with growth and takeoff: maturity stage.