Textbook Notes (363,052)
Canada (158,169)
MGTA01H3 (583)
, (2)
Chapter 3


12 Pages
Unlock Document

University of Toronto Scarborough
Management (MGT)

Industry Canada is federal government agency responsible for small businesses The government gets their stats on small businesses from Stats Canadathe business register ( which tracks businesses) And the labour force survey ( which tracks individuals) To be in the register businesses must have at least one paid employee, annual sales revenues of 30,000 or more or be incorporated A goods producing business in the registered is considered small it if has fewer than 100 employees, a service producing business is considered small if it has fewer than 50 employees Individuals are classified as self employed if they are working owners of a business that is either incorporated or not, if they work for themselves but do not have a business (musicians) or if they work without pay in a family business Small business-- an owner managed business with less than 100 employees New venture/ firm-- a recently formed commercial organization that provides goods and/or services for sale Entrepreneurship Entrepreneurshipthe process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on it Entrepreneurspeople who recognize and seize opportunities Small businesses are usually independently owned and influenced by unpredictable market forcesthey often provide an environment to use personal attributessuch as creativity Entrepreneurship occurs in a wide range of contextsin small, new, old, large firms, firms that grow slowly, or quickly, in non profit organizations and in the public sector Intrapreneurs are people who exhibit entrepreneurial characteristics and create something new within an existing large firm or organizationeg. Procter and gamble and its swiffer Starting a business from scratch involves dealing with a great deal of uncertainty, ambiguity and unpredictabilityso every new venturer needs to exercise some of the personal attributes that entrepreneurs have The role of small and new businesses in the Canadian economy Small businesses play a key role in the Canadian economyrecognition of this role is relatively recent Small businesses ~98% of all businesses in Canada are small ( >100 employees)holds for provinces as well ~58% of all business establishments are located in Ontario and Qubec, all the rest are divided up between the western provinces In Canada ~97.6% of the 1 048 286 employer businesses are small, 2.1% are medium sized and 0.3 are large According to stats Canada- there were 10 317 481 private sector employees in 2005 Private sectorthe part of the economy that is made up of companies and organizations that are not owned or controlled by the government ~50% of those private sector employees work for small businesses, 16% for medium sized enterprises ( 100-499 employees) and 35% for large businesses Businesses with between 5-19 employees account for the highest percentage of employment Distribution of employment by size of firm varies considerably across industries Small businesses account for <2/3 of employment in four industriesnon institutional health care (90%), construction industry (~77%), other services (~73%) and accommodation and food (69%) The annual contribution has been valued at ~25%-- less than the sectors contribution to employment but significant nonetheless New Ventures New firms are main source of job creation and they are also responsible for majority of new products and services The number of firms in Canada gre 12% between 91 and 2003Alberta leading the growth with 38%, BC and ON followed with 20%, and 14% respectively Most of the growth occurred in services producing sectorwith the number of firms in high knowledge industries such as high technology and biotechnology doubling Between 91-03, businesses grew by an average of 9300 each year with 8800 being small and medium sized enterprises There are more than 800 000 women entrepreneurs in Canada and increasing by more than 3% each year in recent years Number of female entrepreneurs in the past two decades has grown by 208% A business counted as a new business could have been operating for years before being statistically counted as a new businessbecause an unincorporated business operated by a self employed person wouldnt be included in Stats Canadas business registra
More Less

Related notes for MGTA01H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.