Small Business: Government relies on two distinct sources of information.
! ! -To be in the register a business must have at least one paid !employee,
!and annual sales of more than $30k, or be incorporated.
! ! -It"s considered small if the company have fewer than 100 employees for a
! ! goods producing company, and less than 50 employees if its a service
! ! producing company.!
! ! -Depends among creativity of entrepreneurs.
Self Employed: Individuals who are working owners of a business that is either
! ! incorporated or unincorporated, if they work for themselves but do not
! ! have a business, or working for family without pay.
-An unincorporated business operated by a self- employed person would not be
counted among the 2.2 million businesses in the register.
-Majority of businesses in Canada have no employees ( just the owners) nor are the
Panel Study of Entrepreneurial Dynamics (PSED)
!-Tracked a sample of Canadian nascent entrepreneurs- people who are rying to
!start a business over four years.
!-Only 15% of those who reported establishing an operating business had !
! incorporated their ﬁrm.
Small Business: An owner-managed business with less than 100 employees.
Medium: 100-499 employees
Big: 500+ employees
New Venture/ Firm: Recently formed commercial organization that provides
!!!goods and/or services for sale.
! ! -Three facts to be considered as new venture/ﬁrm: New (to be new is
!formed within previous 12 months), was incorporated (if it adopts any main
!organizational forms (e.g partner ship) ), and if it sells goods/ services.
Entrepreneurship: The process of identifying an opportunity in the marketplace
!!!and accessing the resources needed to capitalize on the
! ! -Entrepreneurs: People who recognize and seize opportunities.
! ! -Occurs not only in new businesses. Could be in forms of large
! ! corporations.
! ! -Intrapreneurs: People who has entrepreneurial characteristics and create
! ! something new within an existing large ﬁrm or organization.
-98% of all businesses in Canada are small.
Private Sector: Part of the economy that is made up of companies and organizations
that are not owned or controlled by the government.
-Small businesses contributes to employment rates ( account for 2/3 of employment rate
in four industries: non-institutional, the construction, other services, and
accommodations and food.
Management Chapter 3 Notes