entrepreneurship 30 (1c). objectives: venture types form of ownership types indian act –...
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Entrepreneurship 30 (1c)
Objectives:
Venture Types
Form of Ownership
Types
Indian Act – Treaties – Business and Agriculture
Regulations/Law/Intellectual Property
Types of Business Ownership/Forms of Business
Sole Proprietorship
Partnership
Corporation (private, public, crown)
Cooperative
Franchise
Characteristics of Entrepreneurial Ventures
Local – National - International Service - Goods Profit or Not-For-Profit Large Scale/Small Scale Physical/Virtual Note: GNP (gross national product) and Trade Agreements
(NAFTA, GATT) See Handout
Local/National/Multinational
Operate on three geographic scales – becomes more complex as the area expands
Local Exist in your school, local community, larger urban centres
nearby – gives the town or city it’s personality and strength
Most basic venture, restricted to a well-defined market area (rural grocery store, family farms – total income for family), urban centre has an increased population base, more possibilities to expand, start operating a chain of video outlets or pizza stores in the city
National Typically the national retail chains, or nationally based professional firms.
(The Bay, Zellers, Saan, Eaton’s, Safeway, Superstore, Deliotte Touche, Price Waterhouse – accounting firms)
They all usually start with one store, or idea Ex: Timothy Eaton
Multinational Very powerful, represent money, capital, and even political power. Large and have the ability to influence Becoming more of an option than before with globalization and technology Ex: Exxon Corporation: oil and gas Ex: manufacturing pulp and paper, tobacco, etc.
Profit/Non-Profit
Profit Ventures A commercial venture is created b/c of a desire to provide a
product or service to the public in exchange for a monetary benefit (profit).
Profit – is the value that remains after all of the expenses (cost of purchasing goods, salaries, rent, utilities, supplies) of running the business have been paid.
Revenue – expense = net profit or loss Most entrepreneurs make their living off of their venture. Have to pay ee’s, however, owner’s take home pay depends
on the success of the venture that month.
Non-Profit In the business to raising money for other people or causes
Any surplus in funds after expenses will be used for the benefit of others, and not to increase the asset value of the owners, there are no owners in the sense of profit takers
Typically run by community groups, religious organizations, governments, and other civic-minded people.
Supported by volunteers (cuts down on costs) – food bank
Ex: international non-profit – International Red Cross
What does the venture offer?
Service/Good Provision
Service ProvisionNo good or things just a service, typically for a
feeSpecialized areas – service then feeInclude:
Transportation (STC), house cleaning, dry cleaning, real estate, custom combining, autobody work, interior design, lawyers, and accountants are just a few.
Examples:
Mobile pet grooming
Diaper delivery
Mobile locksmith
Golf club cleaning
Adventure tours
Self defence instructor
Pet sitting
Personal chef
Resume and cover letter service
Tax consultant
Mystery shopping
Professional organizer
Tutoring
Packing and unpacking service
Bookkeeping
Language translator
Limousine service
Catering
Welcoming service
Good Provision
Ventures that operate in the retail/wholesale sector are in the business of supplying goods to the public, or to other retailers.
Retailers sell directly to the public.Ex: gas stations, corner store, department stores,
specialty storesWholesalers sell to retailers
Take out contracts with producers to purchase their produce, wholesalers then sell the produce to the retailers for a profit.
“middleman”In many situations the company owns the
wholesaler and the retail enterprise.
Manufacturing: The process of converting raw materials,
components, or parts into finished goods that meet a customer's expectations or specifications. Manufacturing commonly employs a man-machine setup with division of labor in a large scale production.
Entrepreneurial Ventures: Choices
Let’s Think of Businesses in:
• Brantford vs. Burford • Brantford vs. Burlington
• Burlington vs. Toronto • Toronto vs. NYC
Entrepreneurial Ventures
• Profit– Entrepreneurial ventures are usually thought of as for profit
• Their goal is to make income for the owner
– There are more and more Non-For-Profit entrepreneurial ventures starting everyday
• A result of a socially responsible generation
• Size– Usually start small and grow larger
Entrepreneurship
• Service/Goods– Lawn Care vs. Clothing
• Physical/Virtual– Bricks and Mortar – actually have a store for people to visit– E-Commerce – The business is conducted online– Many do both
Entrepreneurship
• Local/Provincial/National/International– For this course we will mostly talk about local businesses– Provincial – Entrepreneurs take their business to similar markets in
their own province– Globalization – has enabled businesses compete internationally
• Mostly due to the ease of doing business over the internet
Article: Hangin’ With The Hemp Queen
Ways To Start a Business
Scratch• The idea is unique, the concept is unique, the business is unique in all
aspects• Advantages:
• First to Market• Less Competition • More Potential for high income
• Disadvantages• No tested model (Trial & Error)• High Risk• Can be copied
Ways to Start a Business
Buying an existing Business• Often done in the form of franchising• Taking an existing idea, product/service and offering it to a specific market• Advantages:
– An existing Model– Lower Risk– Established name (usually)
• Disadvantages:– Less Control (Manager rather than entrepreneur)– Often Pay a high price for the business– Change is difficult
Ways to Start a BusinessModifying an Existing Model• Changes that are made to a pre-existing idea or business• You see a good business idea but feel it can be “tweaked” in
order to fulfill needs or wants of a specific market• Advantages
– An established product/product/idea– A sound business model– Knowledge of your market
• Disadvantage– No guarantees– Change might not be “big” enough for customers to change– Legal Concerns
Goods vs Services
Physical vs Virtual
Venture Type
Indian Policy – Early Reserve Period
Does everyone have a right to run their own business?
Should they be restricted based on their ethic origin?
Dark Spot on Saskatchewan History:
- Indian Policy and Early Reserve Period
- Two articles- http://www.ammsa.com/publications/windspeaker/indian-act-permit-
control-culture
- http://esask.uregina.ca/entry/indian_policy_and_the_early_reserve_period.html
Agriculture/Aboriginal and Non Aboriginal Farmers
How do you Protect your ideas?
Once you’ve come up with an idea, or invention, or an innovation, there are a number of ways to protect it so potential competitors can’t take advantage of it.
In Canada there are several ways to protect your intellectual property.
definitions
Patents
Is a grant made by the government that gives the creator of an invention the sole right to make, use and sell the invention for a set period of time.
Copyrights
Protects literacy works, musical works, artistic works, and software. Copyright to any original work they have created unless they were hired or employed to create it.
Copyright act – can’t use without the persons permission
Trademarks
Industrial Design Act
Integrated Circuit Topography Act
What does an entrepreneur Do? Ideas and
opportunities/aware/outside the box
Identify needs for products or services
Generate ideas on how to provide the needed products or services
Evaluate whether an of the ideas present a venture opportunity
Evaluate ideas and opportunities for development of a venture
Develop a plan
Implement the plan
