GMS 200 Chapter Notes - Chapter 5: Small Business, Franchising, Intrapreneurship

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

Document Summary

Entrepreneurship: creating new businesses by strategic thinking and taking. Entrepreneurs: individuals who establish businesses on their own. People who: buy a local franchise outlet, open a small retail shop, operate a self-employed service business, remember that entrepreneurs usually begin with a great idea. Internal locus of control ability to control your own destiny. Tolerance for ambiguity willing to live with uncertainty. Are owned and run by the same person. Agency theory states that individuals try to make as much money as possible. Using this theory, entrepenurs try to cut costs wherever possible. Entrepreneurs try to use economies of scale, but it"s difficult. The cost advantage that arises with increased output of a product. Entrepreneurs have to remember that 50% of small businesses fail in first 4 years of operation. Small business are ones with 100 or fewer employees. 48% of all private sector employees work in small businesses.