Entrepreneurship AREC 323 202X PDF

Entrepreneurship AREC 323: Introduction to Management for Agri-Food, Environmental, and Forestry Businesses. Douglas Mugabe [email protected] Outline Who are Entrepreneurs? Types of Entrepreneurships Routes to Entrepreneurship Characteristics of En...

Entrepreneurship AREC 323: Introduction to Management for Agri-Food, Environmental, and Forestry Businesses. Douglas Mugabe [email protected] Outline Who are Entrepreneurs? Types of Entrepreneurships Routes to Entrepreneurship Characteristics of Entrepreneurs Rewards and Drawbacks of Entrepreneurship What is a small business Importance of small businesses Who are Entrepreneurs? Entrepreneur  Individuals who discover market needs & launch new firms or new products to meet those needs. Key element: entrepreneurs try to mitigate risk in pursuit of a new venture opportunity. What is an entrepreneurship opportunity? Serial entrepreneurs - can repeatedly turn creative ideas into successful business strategies Are Salaried managers entrepreneurs? Self Employed vs Entrepreneurship: Most business owners are just self-employed rather than entrepreneurs. Do you agree? Varieties of Entrepreneurship Stereotype Type/ Variety Description Founder vs Other Founder brings a new firm into existence Business & Second Stage directs the continuing operations of established firms Franchisees Entrepreneur Franchisee Power is limited by the contractual relationship with a franchising organization High potential High-Potential Venture Has great prospects for growth ventures vs Small (Gazelle) firms & Attractive Small Firm Provides substantial profits to its owner Microbusiness Microbusiness Provides minimal profits to its owner Lifestyle Business A microbusiness allowing its owner to follow a desired pattern of living Artisan vs Artisan Entrepreneurs Technically skilled; Little business knowledge; May not Opportunistic have strong communication skills Entrepreneurs Opportunistic Technically skilled; Supplemented with business Entrepreneurs knowledge and managerial skills Routes to Entrepreneurship Starting a new business Entering a family business Routes to Entrepreneurship Opening a franchised business Buying an existing business Discuss Attitudes and Behavior of Entrepreneurs Commitment and Determination Motivation to Excel Leadership Attitudes and Behaviors of Entrepreneurs Creativity, Self- Opportunity Reliance, and Obsession Adaptability Tolerance of Risk, Ambiguity, and Uncertainty Rewards of Entrepreneurship Drawbacks of Entrepreneurship Deficiencies in Women Entrepreneurship Cukier and Chavoushi (2020), Facilitating Women Entrepreneurship in Canada Women-owned businesses account for only 16% of all SMEs Canadian women are less likely to start a business than men Women are less in tech industries but more inclined in retail, tourism, professional industries, consumer services, arts, and social enterprises 81% of the majority of female-owned businesses employ fewer than 5 employees (97.2% with less than 20 employees) Women face barriers in accessing financing and other support. Why? Discuss solutions for the deficiencies in women’s entrepreneurship in Canada.  Women Entrepreneurship and Covid-19 Manolova et al., (2020), Pivoting to stay the course Covid-19 has disproportionally affected women entrepreneurs as their firms are young and smaller. Businesses owned by women are more likely to fail following a natural disaster relative to men’s. Women entrepreneurship seeks to reduce risk and men seek to seize opportunity. Do you agree? Gender differences in survival are due to the different types of businesses that men and women own. Discuss challenges related to Covid-19 for women entrepreneurs. What is a small business? Financed by an individual or a small group  Stats CAN Fewer than 50 employees;  CRA less than $400 000 of profits & assets Entrepreneur actively involved in day-to-day activities Begins small but has the potential to grow to be a large company Geographically localized (except for its marketing) Advice to small business owners by Wareen Buffett Why is small business important? According to Statistics Canada, 2022: Distribution of private sector employees by business size, 2021 1.19 million small businesses in Canada 97.9 percent have fewer than 100 employees Contributes between 25-41% to Canada’s GDP Employs 67.7% of the private sector labor force Sources: Statistics Canada, Labour Force Survey; and ISED calculations. Created over 494,300 jobs (69%) from 2020-21 Gvt of Canada (2022). Key Small Business Statistics What causes business failure? Inadequate research and development Lack of competitive advantage Uncontrolled costs Poorly developed marketing strategies Poor market timing Succumb to competitor activities Economic/political/environmental effects  Top reasons why new businesses fail Examples: Causes of business failure? Source: Business Insider #1 … “We wasted $1,000,000 on a company that never launched” Hiten Shah, Co-Founder at KISSmetrics (marketing analytics) #2 … “We built the website first and asked our customers about it later” Robin Chase, Co-Founder of Zipcar (car sharing) #3 … “One of the biggest mistakes we’ve made at Moz was to repeatedly build “big bang” projects that required many months of development time without much visibility into progress” Rand Fishkin – CEO of Moz and Co-Founder of Inbound.org (marketing software & analytics) #4 … “I started too late. I toiled in a job I hated for a long time” Leo Babauta – Best-selling author #5 … “I tried to do it all by myself” Leo Laporte – Founder of the TWiT (podcast network) Class Discussion: Wrap up 1. What is an entrepreneurial opportunity? 2. Define small business and identify its importance. 3. Identify rewards and drawbacks of entrepreneurial careers. 4. Describe the types of entrepreneurs. 5. Describe the characteristics of successful entrepreneurs  Any Questions Next: Business Plan