SMALL BUSINESS
MANAGEMENT
Chapter 1
The Role of Small Business and
Entrepreneurship in Canada
Class notes
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Name cards
CHAPTER OBJECTIVES
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1. Discuss the evidence of the level of interest & activity in
the small business sector.
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2. Review common methods of defining small business &
explain why a definition is important.
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3. Understand the current extent of entrepreneurship &
small business in Canada.
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4. Discuss the positive benefits a healthy small business
sector can offer to society.
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5. Explain the probable future environment for
entrepreneurship & the small business community.
The Entrepreneurial Revolution
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Smaller organizational units are acquiring
greater power because the individual
entrepreneur is the most important global
player. ……. big companies will have to
break up and become "confederations of
small, entrepreneurial companies in order
to survive“
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John Naisbitt Gobal Paradox
What has fuelled this growth?
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Throughout course we will exaine
many examples that will illustrate
many reasons why?
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A dream
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Downsizing
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Spinmaster
MovieMill
No Jobs
Natural interest and desire
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American clothing
The Entrepreneurial Revolution
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The evidence of Small business
growth (difficult to measure)
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Increase in the number of business
establishments
Increase in the number of employees of
small business
Increases in government interest and
programs
The Entrepreneurial Revolution
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Increases in the number of small
business related courses at colleges
and universities
Increase in entrepreneurial activities in
large businesses
Increases in political power of small
businesses
Improvement in the image of small
businesses
Small business accounts for
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97% of all businesses,
29% of gross sales,
50% of gross domestic product
58% of the labour force,
32% of business profits,
20 % of all business assets.
What Is Small Business?
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Comparison and Evaluation
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Government Programs
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Lending Programs
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Number of employees
Total Revenue
Profits
Management-Ownership Structure
Current State of Small Business in
Canada
(earth buddy)
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Young Entrepreneurs
Female Entrepreneurs
Immigrant Entrepreneurs
Entrepreneurial Activity by Industry
Entrepreneurial Activity by Region
earth buddy
Contributions of Small Business
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Labour Intensity
Innovations and Inventions
Productivity and Profitability
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bias for action
staying close to the customer
autonomy and entrepreneurship
productivity through people
hands-on value driven
simple form - lean staff
Contributions (cont)
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Flexibility
Canadian Ownership
Small Business Health as a Link to
Economic Growth
Social Contributions
Bread Man
Small Business and the Future
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Change
Technology
Consumer Demographics and
Buying Patterns
Competitive Aspects of Markets
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NAFTA, Global Markets, Large Business
Response
Top 2006 Technology Trends for
Small Business
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Email Marketing & Communication
Voice over the Internet
Mobile Computing
Hosted Applications ( ie Google or Business plan )
Data Backup
Technology in Business Chasm
Online Advertising
Security
Customer Relationship Management
Solution Providers / Consultants
return
Small Business and the Future
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The Economy
The Political Climate
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Small business groups applaud Tories' business tax-cut plans
17:29:28 EST Dec 7, 2005
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The Social Climate
Concept Checks
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Why has there been an increase in entrepreneurial activity
throughout the world in recent years?
What evidences are there that there is an entrepreneurial
“revolution” occurring ?
Why is it important to define small business ?
What are the criteria used to make the small business
definition?
What is the extent of small business in Canada?
What two demographic groups have shown an increase in
proprietorship in recent years in Canada?
What are the contributions small businesses can make to
society?
What are the positive and negative factors which may
influence the small business community in the future?
Earth Buddy
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Is this a small business? Why or why
not?
What is their motivation for being in
business?
What is the industry and what value do
they add -- would this be better suited
to a “big business”
Can you identify any contributions that
this small business contributes as part
of the whole to Canadian society
return
BreadMan
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Can you identify any contributions that
this small business contributes as part
of the whole to Canadian society
return