MGT 255 - Chapter 1
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What kind of trend is occuring toward entrepreneurial attitude, self-employment growth and small business formation in Canada?
It is all positive. (Growing)
How have many individuals become successful entrepreneurs?
Due to the downsizing of larger organizations.
Why do 12% of the self-employed individuals go ino entrepreneurship?
They were "pushed" into business ownership because there was no work available.
Why do 88% of the self-employed individuals go into entrepreneurship?
They chose to leave secure employment and strike out on their own because of a natural interest or a desire for a challenge.
What number of employees does the largest number of small business employ?
No employees. The owner is the only worker.
What percentage of all businesses have 50 or few employees?
How much total job growth in 2006 was due to small businesses?
What percentage of Canadians are employed by small and medium businesses?
56% of the total work force.
What are microbusinesses?
Fewer than 5 employees.
Has the interest in small-business-related courses at Canadian colleges and university increased or decreased?
Increased from nonbusiness majors.
Are small business leaders more trusted by the general public than leaders of religious institutions, big business, the news media, labour unions and the government?
What four criteria exist to establish if a business is considered a small business?
1. Number of employees - Should be less 100 but different instituations use different numbers.
2. Total revenue - Less than $5 million
3. Profits - Net operating profit of $300,00 max.
4. Types of management-ownership structure - Independent managament, owner-supplied capital, local area of operations or relatively small size within its industry.
What is an unique characteristic of many older(55+) entrepreneurs?
They do not want there business to grow.
Are small business generally more labour intensive than large companies?
Yes, each employee is expected to be able to do multiple things.
Do small and medium sized businesses invest more money in research and developement as a proportion of their revenues than large firms?
Yes they do.
What 6 attributes of success listed by Peters and Waterman are commonly found in small businesses?
1. Bias for action - encourages new ides and creativity.
2. Staying close to the customer.
3. Autonomy and entrepreneurship.
4. Productivity through people
5. Hands on-value driven - management by walking around (MBWA)
6. Simple form-lean staff - not many layers in order to talk to management.
Which are more flexible to changes in the economy, government policies and competeition, small businesses or large ones?
How has new technology helped small businesses?
Obtain subcontracts of many services from larger businesses and government organizations that are unable or choose not to carry out techincal advances themselves.
What are the three major occurances in the past few years that have affected the already intensely competitive environment that most small businesses face?
1. North American Free Trade Agreement (NAFTA)
2. Global Markets - Major shift to the globalization of markets. this means that smaller businesses should have increased opportunities to source, produce, and deliver to international markets.
3. Large Business Response - Good suppliers, higher wages.
Has the political climate for small business ownership seem to be improving?
Less paperwork and providing tax incentives.
Does society think that a small business and entrepreneurial activies are a legitimate way to make a living?
Yes. They have the highest level of respect.
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