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Small Business and Enterpreneuship - Coggle Diagram
Small Business and Enterpreneuship
Enterpreneuship
Unique trait
Able to create and find opportunities
Creates something new
Started or works in a small business, focusing on: growth
Characteristic
Willing to take risks
Energetic
High need for achievement
Innovative
Strong desire to act independently
Able to create and find opportunities
Problems? => Solutions
Work hard
Anything is Possible
Social Media
Technology
Example: Spin Master Tm (Toy company), Earth Buddy, Paw Patrol, Sponify; Apple, Facebook, Google, Microsoft
University students
Definition
Person who creates and manages a business to achieve desired objectives = profit
A person who develops an innovative product for a profit by risking their (personal)
Time
Effort
Wealth
Small Business
Unique trait
Started or works/buy (in) a small business
Does not always look for something new
Focusing: manage business
Definition
Common ways to define a small Busi
Revenue
Rank in the indsutry
Numbers of employees
See
Statistic Canada
CFIB (Canadian Federation of Independent Business
Independently owned and operated business
Not dominant in its competitive area
Employee <=500 people
Advantages
Reputation
Can develop good reputation for quality and service
Focus
Can develop products for customers or satisfy needs that other companies NO addressed
Management
Easier to manage people in same location
1 layer of management
Flexible to change based on market demands
Fast decision making
Able to build employee relationships
Financial reward
People FEEL they will earn a higher salary if they boss themselves
Salary potential is limitless = no share profits with anyone
Low starts up costs
May require less money to start + maintain
Owers = accounting, bookkeeping, staffing, etc.
Less staff
Enjoyment
90% CDN enterprenuers would do again
Has fun
Independent
Be your own boss
Flexible work
Disadvantages
High failure rate
90% failed wihtin first 5 years
Causes
External shocks
Unanticipated events occur in the firm's external environ. hurt Buss
Government policies hurt Buss potentials
Undercapitalization
Lack of funds to operate a business normally
Enough money to start but not enough to maintain for years
Managerial incompetence
Owner = subject matter expert in Buss product/service but cannot manage, operate, grow Buss
Cannot cope with growth
Cannot give up control to others & focus on long term stategy
Creative Buss fail: difficulties in managing the buss
High stress level
Must make enough money to pay salary for themselves + workers
Worries
Competition
New equipment
Inventory, amount => Too much/little?
Employees
Family