1 SMALL BUSINESS MANAGEMENT Chapter 1 Role of Small Business in Canada Role of Small Business in Canada

2 The Entrepreneurial Revolution u Increase in the number of business Establishments u Increase in the number of employees of small business u Increases in government interest and programs

3 The Entrepreneurial Revolution u Increases in the number of Small-Business related courses at Colleges and Universities u Increase in Entrepreneurial Activities in Large Businesses u Increases in Political Power of Small Businesses u Improvement in the Image of Small Businesses

4 What is Small Business? u Comparison and Evaluation u Government Programs u Lending Programs – Number of employees – Total Revenue – Profits – Management-Ownership Structure

5 Current State of Small Business in Canada u Young Entrepreneurs u Female Entrepreneurs u Immigrant Entrepreneurs u Entrepreneurial Activity by Industry u Entrepreneurial Activity by Region

6 Contributions u Labor Intensity u Innovations and Inventions u 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

7 Contributions (cont) u Flexibility u Canadian Ownership u Small Business Health as a link to Economic Growth u Social Contributions

8 Small Business and the Future u Change u Technology u Consumer Demographics and Buying Patterns u Competitive Aspects of Markets –NAFTA, Global Markets, Large Business Response

9 Small Business and the Future u The Economy u The Political Climate u The Social Climate

10 Concept Checks u Why has there been an increase in entrepreneurial activity throughout the world in recent years? u What evidences are there that there is an entrepreneurial “revolution” occurring ? u Why is it important to define small business?

11 Concept Checks u What are the criteria used to make the small business definition? u What is the extent of small business in Canada? u What two demographic groups have shown an increase in proprietorship in recent years in Canada?

12 Concept Checks u What are the contributions small businesses can make to society? u What are the positive and negative factors which may influence the small business community in the future?