Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Part 1: The Decision to Start a Business Chapter 1 The Role of Entrepreneurship and Small Business in Canada The Role of Entrepreneurship and Small Business in Canada

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. The Entrepreneurial Revolution Increase in the number of business establishments Increase in the number of business establishments Increase in the number of employees of small business Increase in the number of employees of small business Increases in government interest and programs Increases in government interest and programs

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. The Entrepreneurial Revolution Increases in the number of small business related courses at colleges and universities Increases in the number of small business related courses at colleges and universities Increase in entrepreneurial activities in large businesses Increase in entrepreneurial activities in large businesses Increases in political power of small businesses Increases in political power of small businesses Improvement in the image of small businesses Improvement in the image of small businesses

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. What Is Small Business? Comparison and Evaluation Comparison and Evaluation Government Programs Government Programs Lending Programs Lending Programs – Number of employees – Total Revenue – Profits – Management-Ownership Structure

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Current State of Small Business in Canada Young Entrepreneurs Young Entrepreneurs Senior Entrepreneurs Senior Entrepreneurs Female Entrepreneurs Female Entrepreneurs Immigrant Entrepreneurs Immigrant Entrepreneurs Entrepreneurial Activity by Industry Entrepreneurial Activity by Industry Entrepreneurial Activity by Region Entrepreneurial Activity by Region

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Contributions Labour Intensity Labour Intensity Innovations and Inventions Innovations and Inventions Productivity and Profitability 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

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Contributions (cont) Flexibility Flexibility Canadian Ownership Canadian Ownership Small Business Health as a Link to Economic Growth Small Business Health as a Link to Economic Growth Social Contributions Social Contributions

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Small Business and the Future Change Change Technology Technology Consumer Demographics and Buying Patterns Consumer Demographics and Buying Patterns Competitive Aspects of Markets Competitive Aspects of Markets –NAFTA, Global Markets, Large Business Response

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Small Business and the Future The Economy The Economy The Political Climate The Political Climate The Social Climate The Social Climate

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Concept Checks Why has there been an increase in entrepreneurial activity throughout the world in recent years? 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 ? What evidences are there that there is an entrepreneurial “revolution” occurring ? Why is it important to define small business? Why is it important to define small business?

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Concept Checks What are the criteria used to make the small business definition? What are the criteria used to make the small business definition? What is the extent of small business in Canada? 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 two demographic groups have shown an increase in proprietorship in recent years in Canada?

Balderson 7e Copyright © 2008 by McGraw-Hill Ryerson. All rights reserved. Concept Checks What are the contributions small businesses can make to society? 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? What are the positive and negative factors which may influence the small business community in the future?