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Chapter 3

Chapter 3

Management (MGT)
Course Code
Chris Bovaird

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Introduction to Management Chapter Three Notes
Canada is a market economy, meaning anyone my start a business. There are no fees; you
do not need government permission. To start a new business you just begin.
Textbook: 380 new businesses are started in Canada every day!
Textbook describes a small business as; Owner-managed, with less than 100 employees.
It is impossible to know how many small business there are in Canada, we can estimate
(recent estimate is approximately 2.4 million)
In Canada the total working population is: 15 million
10% of Canadians are self-employed. Nearly 25% work in businesses with less than 5 others.
Nearly 50% work in businesses with less than 50 others.
It is easy to start a business; however it is also easy for that business to fail. After 2 years
39% of businesses fail. After 5 years 64% of businesses fail. After 10 years 80% of
businesses fail.
Entrepreneurs: personality Traits
High Need for Achievement
Internal locus of control
Risk tolerance
The Needs Motivation theory
Psychologist David McClelland (1961). The theory describes three basic human motivations.
1.Need for power (N-Pow): People who are 'authority motivated'. They need to be
influential. N-Pow produces a need to lead. These people need personal status and
prestige. Examples; the professors oldest brother, cops, army, politicians.
2.Need for affiliation (N-Aff): People who need friendly relationships, motivated by
interaction with others. N-Aff produces need to be liked, held in high regard. Team
players. Examples; the professors third brother, teachers, caring and tending
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