MGTA01H3 Chapter Notes - Chapter 3: Small Business, Internal Fixation, Franchising
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MGTA01H3 Full Course Notes
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Chapter 3: understanding entrepreneurship, small business, and new venture creation. Not necessarily: the terms small business, new venture, and entrepreneurship are closely linked terms, but each idea is distinct. The role of small and new businesses in the canadian economy: prior to the 1980s, large businesses were the focus of attention in terms of economic impact within industrialized nations. Smes outperform large businesses in many areas, particularly in terms of their contribution to employement: new businesses, too, lead the way when it comes to innovation and new technology. The most common sources of debt nancing include: financial institutions. While commercial banks are the main providers of debt nancing for established small businesses,it is usually dif cult for a new business to borrow from a bank. Banks are risk averse, and loans to new businesses are considered very risky, largely because the business has yet to establish its ability to repay the loan.