Chapter 3 Study notes
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_____________________________ Chapter 3
A small business can be defined by: number of employees, sales revenue, size of
investment, type of ownership, etc.
Industry Canada: main federal government agency responsible for small business.
A small business is an owner managed business with less than 100 employees.
Example: Tahmena’s dad’s laundry store
The New Venture/Firm
A new venture/firm is a newly (past 12 months) formed organization that provides
goods/services for sale.
Usually enter the market by: introducing a new product/service, competing with
current businesses with an improved product, or franchise.
Entrepreneurship is the process of identifying an opportunity in the marketplace
and accessing the resources needed to capitalize on that opportunity.
Entrepreneurs: people who recognize and seize opportunities.
Intrapreneurs: people who work in a large firm and exhibit entrepreneurial
characteristics. (Don’t have to worry about the money needed.)
The Role of New and Small Businesses in Canada
Most businesses (about 98%) in Canada are small businesses.
10% of the small businesses have self-employed workers, 25% work in business < 5
employees, and % work in business < employees
Private sector: the part of the economy that is made up of companies and
organizations that aren’t controlled by the government directly.
Main source of job creation, responsible for majority of new products and services.
Women entrepreneurs are becoming more common and they are beneficial for the
economic system, because they make good profits, they have great entrepreneurial
characteristics, and generally SMEs increase employment opportunities.
A business is not included in Statistics Canada’s Business Register if:
unincorporated with no employees.
SMEs outperform large in areas like innovation, new technology, and contribution to
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