Textbook Notes (280,000)
CA (160,000)
UTSC (20,000)
MGT (800)
MGTA01H3 (600)
Chapter 3

Chapter 3


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Ingrid L.Stefanovic
Chapter
3

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The Links Among Small Business, New Venture Creation, and Entrepreneurship
Small Businesses
A goods producing business in the register is considered small if it has fewer than 100
employees, 50 for service-producing firms.
Individual workers (self employed) such as musicians, or people working in a family
business without pay are considered small businesses.
An unincorporated business operated by a self-employed person (without employees) are
not regarded as businesses.
Small business – an owner-managed business with less than 100 employees
New Venture/Firm
A firm is considered new if it was operating the past 12 months, if it takes an
organization business form, and if it sells goods or services.
The most common commercial organization forms of business are sole proprietorships,
partnerships, cooperatives and corporations.
New venture/firm – a recently formed commercial organization that provides goods
and/or services for sale
Entrepreneurship
Entrepreneurship - the process of identifying an opportunity in the marketplace and
accessing the resources needed to capitalize on the opportunity
Entrepreneurs – people who recognize and seize opportunities
Small businesses are usually owned by individuals and the influenced by unpredictable
market forces.
Small businesses create an environment for personal attributes such as creativity.
An intrapreneur is a person that exhibit entrepreneurial characteristics in existing large
firms or organizations.
Unlike entrepreneurs however, intrapreneurs do not have to worry about gathering the
resources because resources are provided by employers.
The Role of Small and New Businesses in the Canadian Economy
Small Businesses
Approximately 98% of all businesses in Canada are small businesses (with less than 100
employees).
Private sector – the part of the economy that is made up of companies and organizations
that are not owned or controlled by the government
Small businesses in Canada are responsible for 49 percent of the private sector labour
force.
Small businesses account for 25 percent of the annual contribution to Canada’s GDP.
New Ventures
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