CH.4 ~ Interrelationship of small business
Self-employed Canadians account for 15% of the workforce
everyday, 380 new business are started
new firms create the most jobs
Innovation, science, and economic development Canada is main federal agency responsible for small businesses
for reporting small business statistics, gov’t relies on two sources of info provided by statistics Canada → Business register (tracks businesses) → Labour force survey (tracks individuals)
to be included in register, business must have one paid employee and revenues of $30,000.00+ or be incorporated
goods-producing business in register is considered small if it has >100 employess
services-producing business is small if it has >50 employees
Labour force survey: uses info to make estimates of (un)employment levels
Self-employed: if they are working owners of a business that's inc. or not inc. // work for themselves but do not have a business (musicians) // work at a family business w/o pay
SMALL BUSINESS: business with >100 employees
have contributed to 30% of canada’s GDP over past decade
BC has highest rate of GDP from small businesses at 33%
Three pieces of criteria that can help us know that a new firm has been birthed
If it has been incorporated
if it sells goods or services
when it was formed
Business is new if:
started within the last 12 months
adopts any of the main organizational forms
proprietorship
partnership
corporation
cooperative
if it sells goods or services
New Venture can now be defined as a recently formed commercial organization that sells goods/services
process of identifying an opportunity in the marketplace and accessing resources needed to capitalize on it
people who recognize and seize opportunities
~Entrepreneurial Characteristics~
resourcefulness and a concern for good long-term customer relations
strong desire to “be their own boss'“
behavioural (taking the initiative)
personality traits (independence)
skills (problem-solving)
“What is really important is not who the person is but what the person does”
People who exhibit entrepreneurial characteristics and create something new within existing firm/organization are intrapreneurs
DIFFERENCE BETWEEN INTRA & ENTRE
Intra: do not have to concern themselves with getting resources needed to bring new product to market b/c big companies have the resources available
small/new businesses play a key role in canada’s economy
however, they were not acknowledged until the last 3 decades
97.9% of business in C. are small and more than half have >5 employees
medium-sized businesses make up 1.9% of employer businesses
large businesses represent 0.2%
In 2020, there were 12M employees in private sector
main source of job creation
responsible for most new products and services
women play prominent role in starting new ventures
account for half of all new businesses formed
lead only 14.8% of the small/medium businesses that export goods/services
want to break out of the “glass ceiling” they face at big companies
~key terms~
small business: owner-managed business with fewer than 100 employees, some statistics do not include unincorporated businesses with one owner and no employees
new venture: recently formed organization opened within the last 12 months, that sells goods and services
entrepreneurship: the process of identifying and capitalizing on a marketplace opportunity
entrepreneur: a person who recognizes and seizes opportunities
intrapreneurs: create something new within an existing large organization
role of small business: 98% of all employer businesses in Canada are small (fewer than 100 employees), main source of job creation, and leaders in innovation and new technology
the increasing role of female entrepreneurs: women now account for approx. half of all new businesses, the rise of mompreneurs
Self-employed Canadians account for 15% of the workforce
everyday, 380 new business are started
new firms create the most jobs
Innovation, science, and economic development Canada is main federal agency responsible for small businesses
for reporting small business statistics, gov’t relies on two sources of info provided by statistics Canada → Business register (tracks businesses) → Labour force survey (tracks individuals)
to be included in register, business must have one paid employee and revenues of $30,000.00+ or be incorporated
goods-producing business in register is considered small if it has >100 employess
services-producing business is small if it has >50 employees
Labour force survey: uses info to make estimates of (un)employment levels
Self-employed: if they are working owners of a business that's inc. or not inc. // work for themselves but do not have a business (musicians) // work at a family business w/o pay
SMALL BUSINESS: business with >100 employees
have contributed to 30% of canada’s GDP over past decade
BC has highest rate of GDP from small businesses at 33%
Three pieces of criteria that can help us know that a new firm has been birthed
If it has been incorporated
if it sells goods or services
when it was formed
Business is new if:
started within the last 12 months
adopts any of the main organizational forms
proprietorship
partnership
corporation
cooperative
if it sells goods or services
New Venture can now be defined as a recently formed commercial organization that sells goods/services
process of identifying an opportunity in the marketplace and accessing resources needed to capitalize on it
people who recognize and seize opportunities
~Entrepreneurial Characteristics~
resourcefulness and a concern for good long-term customer relations
strong desire to “be their own boss'“
behavioural (taking the initiative)
personality traits (independence)
skills (problem-solving)
“What is really important is not who the person is but what the person does”
People who exhibit entrepreneurial characteristics and create something new within existing firm/organization are intrapreneurs
DIFFERENCE BETWEEN INTRA & ENTRE
Intra: do not have to concern themselves with getting resources needed to bring new product to market b/c big companies have the resources available
small/new businesses play a key role in canada’s economy
however, they were not acknowledged until the last 3 decades
97.9% of business in C. are small and more than half have >5 employees
medium-sized businesses make up 1.9% of employer businesses
large businesses represent 0.2%
In 2020, there were 12M employees in private sector
main source of job creation
responsible for most new products and services
women play prominent role in starting new ventures
account for half of all new businesses formed
lead only 14.8% of the small/medium businesses that export goods/services
want to break out of the “glass ceiling” they face at big companies
~key terms~
small business: owner-managed business with fewer than 100 employees, some statistics do not include unincorporated businesses with one owner and no employees
new venture: recently formed organization opened within the last 12 months, that sells goods and services
entrepreneurship: the process of identifying and capitalizing on a marketplace opportunity
entrepreneur: a person who recognizes and seizes opportunities
intrapreneurs: create something new within an existing large organization
role of small business: 98% of all employer businesses in Canada are small (fewer than 100 employees), main source of job creation, and leaders in innovation and new technology
the increasing role of female entrepreneurs: women now account for approx. half of all new businesses, the rise of mompreneurs
