1. SMALL BUSINESS MANAGEMENT Chapter 1 The Role of Small Business and Entrepreneurship in Canada enron BarmanBread Man Alaska dogs Holy Crap CerealHush Smart Earplugs Freshbooks.com

2. CHAPTER OBJECTIVES 1. Discuss the evidence of the level of interest & activity in the small business sector. 2. Review common methods of defining small business & explain why a definition is important. 3. Understand the current extent of entrepreneurship & small business in Canada. 4. Discuss the positive benefits a healthy small business sector can offer to society. 5. Explain the probable future environment for entrepreneurship & the small business community.

3. 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

4. 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.

5. 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

6. 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

7. What has fuelled this growth? Throughout course we will examine many examples that will illustrate many reasons why? – A dream – Downsizing MovieMill – No Jobs Enron – Natural interest and desire enron Alaska dogs

8. 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

9. 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

10. 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.

11. 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

12. Current State of Small Business in Canada Young Entrepreneurs Senior Entrepreneurs Female Entrepreneurs Immigrant Entrepreneurs Entrepreneurial Activity by Industry Entrepreneurial Activity by Region Holy Crap Cereal Hush Smart Earplugs

13. 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

14. Contributions (cont) Flexibility Canadian Ownership Small Business Health as a Link to Economic Growth Social Contributions Bread Man

15. Small Business and the Future Change Technology Internet & Mobile Technology Consumer Demographics and Buying Patterns Competitive Aspects of Markets – NAFTA, Global Markets, Large Business Response Freshbooks.com

16. Small Business and the Future The Economy The Political Climate – Small business groups applaud Tories' business tax-cut plans The Social Climate

17. 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?