COMM 1010:

Business in a Global Context

Entrepreneurship and Business Ownership
Bachelor of Commerce Program
Rowe School of Business
Fall 2017

Dr. Ramon Baltazar

 AGENDA

Small business
Entrepreneurship
Starting a small business

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 SMALL BUSINESS
Industry Canada definition A
business with < 100 people for goods
or < 50 people for services
Approximately 1.1 million small
businesses
25% in goods, 75% in services
98% of all employers
50% of the private labor force
Creates 40% of all new jobs

Significantly started by entrepreneurs

(an economic factor of production)

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 ENTREPRENEURSHIP
Process of identifying an opportunity and
accessing the resources needed for a
business start up
Associated with small business
Closely related to innovation

Intrapreneurship: Entrepreneurship within an

established business (e.g. 3M)

Characteristics of entrepreneurs
Self-directed, Self-nurturing, Action-oriented,
Highly energetic, Tolerant of uncertainty, Able
to learn quickly, Passionate and determined
http://vimeo.com/19986675 (0-1:50 )

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 ENTREPRENEURIAL TRENDS
Growth of female entrepreneurs BREAKDOWN OF HOME-BASED BUSINESSES
1/3 of all self-employed people in
2011, growing 20% (vs. 14% for Financial &
males) Sales & Real Estate
Distribution 5%
Highest participation in 10%
accommodation and food (25%), Arts/Design
lowest in agriculture and primary Creative Bldg. Trades
13% 31%
industries (9%)
Personal Bus.
Svcs. Services
Growth of home based businesses 14% 27%

Growth of web-based businesses

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 STARTING THE BUSINESS
Find the idea with a
competitively attractive
industry position (e.g.
restaurants)
Choose a business
form
Develop a business
plan
Find financing for the
business
Start up the business

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 TURNING YOUR PASSIONS AND
PROBLEMS INTO OPPORTUNITIES
A business idea is a good How many $1 cups of coffee
business opportunity if:
- It fills customers needs.
do you need to sell every
- You can sell the product or month if your mark up is 90%
service at a price customers are of selling price, you have 5
willing and able to pay-and still minimum wage employees,
make a profit.
rent of $2,500 and other
- You have the skills and
resources to start a business. expenses of $1,500 per
- You can keep the business month?
going.
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 CHOOSING A BUSINESS FORM
Sole Proprietorship
Owned, and usually managed, by one person.
Profits accrue to proprietor, unlimited liability

Partnership
Two or more co-owners
Profits divided among partners, unlimited liability for general partners

Corporation
A legal entity with authority to act and have liability separate from its owners.
Normally more money for investment, separate owners and managers, limited liability, perpetual life
Relatively difficult to start-up and dissolve, more resource intensive to maintain, double taxation

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COMPARISON OF BUSINESS FORMS

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 SPECIAL FORMS
Franchise
The right to use a specific businesss name and sell its goods and
services in a given territory
Proven business, franchise fees and restrictions

Cooperative
Owned by members and customers, who pay an annual
membership fee and share in any profits.
More than 9,000 co-operatives serving 18 million Canadians
No income taxes, profit sharing, requires professional management
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 Business Plan
Detailed written statement describing Sample outline
the nature of business, the target Cover Letter
market, competitive advantage, and Executive Summary
the resources and qualifications of Company Background
owner(s). Management Team
Financial Plan
Capital Required
Time consuming, forces thorough Marketing Plan
planning Location Analysis
Manufacturing Plan
Appendices

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Sources of Financing For SMEs
 KEEPING THE BUSINESS GOING

Management and leadership

Strategy, structure, control systems
Marketing
Production and Operations
Accounting and Finance
Human resources management
Information management
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 REASONS FOR SMALL BUSINESS SUCCESS
AND FAILURE

Less than 50% of new business ventures survive five years

Success factors
Hard work, market demand, management competence, drive and
dedication, luck
Failure
Unrealistic expectations, faltering commitment, inadequate funding, poor
management, extenuating circumstances
Starting up is hard work
http://vimeo.com/19986675 (10:40-15:56)

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 TEAM BUSINESS IDEA EXERCISE
What is the new product or service offering? What is unique about the
offering? Is the product or service already being offered by others, and if
not, is it easily copied?
Who are the customers? Where are they located? What customer needs
are we targeting?
Who would be our direct and indirect competitors? How will our product or
service stand out from competitors offerings?
What is the investment required? Itemize.
What is the estimated breakeven volume, based on fixed costs, unit prices
and unit variable costs?

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