Chapter_3-5[1].docx

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22 Apr 2012
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Chapter 3
- Industry Canada is the main federal government agency responsible for small business
- The government relies on two distinct sources of information in reporting Canadian small
business statistics: the Business Register (which tracks businesses) and the Labour Force
Survey (which tracks individuals)
- To be included in the register a business must have at least one paid employee, annual sales
revenues of 30 000 or more, or be incorporated
- Good producing business is considered small if it has fewer than 100 employees, service
producing business is considered small if it has fewer than 50 employees
- Small business: owner-managed business with less than 100 employees
New Venture/Firm: criteria; when nit was formed, whether it was incorporated, and if it sold
goods/services; a recently (previous 12 months) formed commercial organization that provides
goods/services for sale
Entrepreneurship
- Entrepreneurship: 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 exhibit entrepreneurial characteristics and create something new
within an existing large firm or organization
Difference between intrapreneurs and entrepreneurs: intrapreneurs don’t have to worry
about getting the resources needed to bring the new product to market since their
employer provides the resources
Small Businesses
Close to 98% of all businesses in Canada are small (less than 100 employees)
58% of all business establishments in Canada (small or big) are located in ON and QU
Majority of small businesses (57%) have fewer than five employees
Over 10 000 private sector employees in 2005
Private sector: the part of the economy that is made up of companies and organizations that are
not owned by or controlled by the government
GDP: refers to the market value of all final goods and services produced within a country in a
given period of time
Annual contribution of small business to GDP over past decade, 25%
New Ventures
- Women playing a prominent role in entrepreneurship
- Government statistics on new ventures exclude businesses without employees
THE ENTREPRENEURIAL PROCESS
1) The Entrepreneur
- High energy level, independent, problem solving
- They need to identify an opportunity and access resources
2) Identifying Opportunities
- Involves generating ideas for new/improved products, processes, or services
Idea Generation
Involves abandoning traditional assumptions about how things work, should be,
and seeing what others do not
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