Impacts on the Community

Entrepreneurs impact the local economy through job creation, new ideas, economic and political benefits. Eg. Loyalist Country Inn venture in PEI

1. Job Creation Entrepreneurship creates jobs in the local community Multiplier effect: Employees have money to buy goods and services People spend money in the local community and more jobs will be created. More people will move into the community and more goods and services will be needed.

2. New Ideas Entrepreneurship generates new ways of doing things Creates a broad range of goods and services Examples: Internet, cell phones, CDs, microwave ovens, iPods, laptops, iPad, etc.

3. Economic Benefits Through competition, entrepreneurs help lower prices. Improves a society’s standard of living. Successful new ventures produce additional entrepreneurial and investment opportunities. Bring in more wealth.

4. Political Benefits Society provides a supportive environment Financial and legal institutions provide money for starting new ventures. Education and training available. Supportive laws and regulations. Free and open trade. Lobby groups (support groups): In government, business, and education that collaborate, advise, and encourage.

The effects on Demographics Demographics is the study of people in a population. Studying demographics gives us the ability to better predict what people may want to buy.

Baby Boomers Baby boomers were born between the end of World War II and the early 1960s. Baby boomers have the largest percentage of disposable income and earned wealth of all Canadian age groups. As they grow older, they are spending more money on leisure activities.

Immigration Creates a positive impact on local economies They have their own ethnic and cultural interests that local entrepreneurs can support. Eg. An Italian bakery in an Italian neighbourhood