Alaska dogs
Holy Crap Cereal
Hush Smart Earplugs
SMALL BUSINESS MANAGEMENT
enron
Chapter 1
The Role of Small Business and
Entrepreneurship in Canada
Freshbooks.com
Barman
Bread Man
The Entrepreneurial Revolution
– 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“
• John Naisbitt Gobal Paradox
Introduction to Entrepreneurship and Why
Students will Want to Study the Subject
• “Why should I study entrepreneurship?”
Perhaps you are interested in owning a business
or are curious about why some businesses
succeed and others fail.
• What you should know is entrepreneurship is an
exciting field and there are many benefits to
studying about small business such as:
• Students who study entrepreneurship are more likely to
start a business
Copyright © 2014 McGraw-Hill Ryerson.
All rights reserved.
Introduction to Entrepreneurship and Why
Students will Want to Study the Subject (cont.)
• Students who enroll in entrepreneurship courses
– earn more money
– learn about important topics such as business planning,
managing growth, and family business
– Students who study entrepreneurship develop critical
thinking and problem solving skills
• Due to trends in the workforce, such as
outsourcing and subcontracting, many would-be
employees end up working for themselves. People
who study entrepreneurship are more likely to
succeed in today’s workforce
Introduction to Entrepreneurship and Why
Students Will Want to Study the Subject (cont.)
• 99% of business in Canada are considered to be
small or medium enterprises (SMEs), so even if
you never become an entrepreneur you are likely
to work in a small firm. Studying entrepreneurship
will provide you with the knowledge and skills to be
successful in small companies
What has fuelled this growth?
• Throughout course we will examine many
examples that will illustrate many reasons
why?
– A dream Alaska dogs
– Downsizing
• MovieMill
– No Jobs
• Enron
enron
– Natural interest and desire
The Entrepreneurial Revolution
• The evidence of Small business growth (difficult to
measure)
– Increase in the number of business establishments
– Increase in the number of employees of small
business
– Increases in government interest and programs
The Evidence of Small business Growth
– 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
–
–
–
–
–
–
98% of all businesses (1-50 employees)
29% of gross sales,
26% of gross domestic product (1-5 employees)
58% of the labour force,
32% of business profits,
17.5 % of all business assets.
What Is Small Business?
• Comparison and Evaluation
• Government Programs
• Lending Programs
• Number of employees
– 100 manufacturing ----------- 50 non-manufacturing
• Total Revenue
– Retailing $3.5 million - $13.5 million
• Profits
– Net income $300,000
• Management-Ownership Structure - varies
Current State of Small Business in
Canada
Hush Smart Earplugs
• Young Entrepreneurs
• Senior Entrepreneurs Female Entrepreneurs
Holy Crap Cereal
Immigrant Entrepreneurs Entrepreneurial
Activity by Industry
• Entrepreneurial Activity by Region
Contributions of Small Business
• Labour Intensity
• Innovations and Inventions
• Productivity and Profitability
–
–
–
–
–
–
bias for action
staying close to the customer
autonomy and entrepreneurship
productivity through people
hands-on value driven
simple form - lean staff
Contributions (cont)
• Flexibility
• Canadian Ownership
• Small Business Health as a Link to Economic
Growth
• Social Contributions
Bread Man
Small Business and the Future
•
•
•
•
•
Change
Technology
Internet & Mobile Technology Freshbooks.com
Consumer Demographics and Buying Patterns
Competitive Aspects of Markets
– NAFTA, Global Markets, Large Business Response
Small Business and the Future
• The Economy
• The Political Climate
–
Small business groups applaud Tories' business tax-cut plans
• The Social Climate
Concept Checks
– 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?