Characteristics of Entrepreneurial ventures

Categories of Entrepreneurial Ventures There are 5 categories of entrepreneurial ventures: For profit/Not-for-Profit Large Scale/ Small Scale Service Production/Goods Production Physical/Virtual Local/Provincial/National/International

For-Profit/ Not-for-Profit A business venture is usually undertaken for profit. However, sometimes ventures are created for social or community purposes. Not-for-Profit organizations engage in fundraising initiatives. Their goal is not to make a profit, but to raise money to deliver a special service or meet a need in society. Ex: Greenpeace, Save the Children, United Way.

Large Scale/ Small Scale Large businesses or not-for-profit organizations seek to satisfy needs or wants on a large scale ( national or international level). Smaller companies or not-for-profit organizations work to satisfy a need or want at the local level.

Service Production/ Goods Production Entrepreneurial ventures can be set up to produce a good or a service. A good might be something that is eventually sold for a profit or it might be a not-for-profit distributes free of charge ( i.e. mittens to the homeless) A service can be anything from fixing something or giving advice for profit to fundraising efforts to a community organization for no pay.

Physical/ Virtual In the past most businesses were brick-and- mortar locations that customers could visit. ( ex: shopping malls, car dealerships, etc.) Now, businesses can operate completely on the Internet. This virtual business is conducted electronically through e- commerce.

Local/ Provincial/ National/International Ventures can operate in a single community, in a variety of towns and cities in a province, across the country, or across the world. Globalization increases the number of markets throughout the world for small and large businesses.

Local/ Provincial/ National/International Since consumers in many other countries provide a market for Canadian goods and services, Canada exports a large percentage of its gross national product ( GDP). GDP is the total of all goods and services produced in Canada in one year.

Local/ Provincial/ National/International In order to compete more effectively, many countries have entered into trade agreements. Trade agreements outline which goods and services can travel easily between countries and which ones will have a tariff or tax.

Local/ Provincial/ National/International Entrepreneurs in Canada benefit from trade agreements such as: GATT ( General Agreement on Tariffs and Trade) NAFTA ( North American Free Trade Agreement)

General Agreement on Tariffs and Trade (GATT) GATT regulates and reduces tariffs among more than 100 counties around the world, including Canada. It also provides a way for member countries to resolve any trade disputes. The World Trade Organization (WTO) enforces GATT.

North American Free Trade Agreement (NAFTA) NAFTA benefits North American businesses by reducing trade tariffs to encourage the trade of goods and services between Canada, Mexico, and the United States. Tariffs have been removed on most goods or services traded between Canada and the United States.

Free Trade Activity The United States and Mexico are not the only countries Canada has a free trade agreement with. Using the Internet, research five other free trade agreements Canada has with other countries Identify the following: When was the agreement signed? What is the amount ($) Canada exports and imports from this company in one year? Why is this information important to entrepreneurs?